INTRODUCING VAT to Guernsey would be disastrous, said local shops.
The Foot Review of British offshore centres, which was commissioned by HM Treasury and published on Thursday, included the suggestion that there was a ‘compelling case’ for jurisdictions that did not have VAT or a goods and services tax, to introduce such a system.
But the idea has not been well received by businesses in Town.
Celaro shop assistant Gail Massa said not having VAT was one of the reasons that Guernsey appealed to visitors.
‘Financially it might be a good thing if it helps fill the black hole, but it should not be the same level as the UK.
‘Any VAT should be low to keep people buying. We don’t want it to affect business otherwise people will buy online,’ she said.
Andos customer assistant Gemma Machon agreed.
‘If it [the shop’s products] got more expensive it would affect how much people bought.’
Lexicon manager Jeanette Hamon said introducing GST or VAT would have an impact on the number of customers coming into the shop.
‘But if everyone has to do it and VAT is on everything, then all the shops will be in the same position.’
Paul Savage, a Lexicon customer on a weekend trip from Jersey, said the island had the option to fight it.
‘A lot of people in Jersey are angry about the goods and services tax as it was a blanket tax on everything and people had to absorb it.
‘I like the idea of paying taxes to pay for what you get rather than relying on the banks,’ he said. ‘But the poorer people will suffer.’
Sails shop assistant Sue Cooney said VAT would have a negative impact on business.
‘The freight costs a lot and with VAT as well products would cost more and more money.
‘If they introduced it, many people would buy from the internet or catalogues.’
Article posted on 2nd November, 2009 - 11.30am
9 Article Comments
VAT just hits the working man not the rich elite. Income Tax is fair but not VAT; the beaurocracy surrounding it is also crippling for the smaller business.
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I imagine it’s been said before (has Choose2EschewEU.com been taken?) but is a beaurocracy a system of governance based on fancy dans?
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Andy – Income tax is only fair if all pay the same rate on all income, not if jurisdictions such as Guernsey allow the wealthy to live here and have a cap on the amount of tax which they pay, no matter how much income they have. The same applies to social security – there is a cap on this too. Here in Guernsey it is possible for a wealthy person to pay a significant amount less in tax and social security in percentage terms of their income, than a low paid manual worker. How can this be right?
Everyone pays VAT, so if the rich have more to spend then in theory they should pay more, assuming that they shop on the island.
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Aye Andy:
I’m inclined to agree with you,
I thought that under the law of being a dependency English Law does not count; if the laws of dependency had been done away with then I see no reason to have any further dealings with England, they are the ones who have reneged on us.
I wonder what would happen if all in Guernsey, and I mean all; refused to pay if it should ever come about: they can’t take us to court, because as mentioned all would be against it.
Why do these idiots in Whitehall think they are dealing with sheep. I should let them know that we can be as enraged as a bull if they keep trying their dirty trick games.
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I agree with Andy that tax on earnings is fair but VAT is definitely not as it would hit the middle and lower paid who would not have any choice no matter what they earned. It would not make any difference to the well off or very well paid. They can purchase what they want without worrying if they can afford it.
No to VAT in Guernsey.
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Sorry to keep beating the same old drum but, if you don’t want a Sales Tax (who does) then bring in a tax on the employer’s payroll. As I have said before, Bermuda is a good role model for this and a little internet research will show how well targeted this can be.
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I agree, VAT certainly is unfair. However we are already paying it in most Guernsey shops and the excuse we are given by retailers is the old chestnut of shipping costs.
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VAT is not necessary. The revenue from a modest corporation tax should be more than enough – provided the States do their bit and reign in spending of course.
We used to do alright before Zero 10 didn’t we?
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CD:
we did alright as Sarnia Cherie:
Get rid of that lot and tighten our belts.
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