A REPORT laying the groundwork for a goods and services tax will go before the States within months. But Treasury minister Lyndon Trott is still convinced introducing one is avoidable. Jersey’s States recently supported a draft law that means a sales tax will be introduced at 3% on almost everything from next April.

Last June, the States of Guernsey agreed to investigate GST because it might be needed in the long-term. Enabling legislation is being developed.

‘Since June 2006, my department has continued to investigate the very varied goods and services taxation systems across the world,’ said Deputy Trott.

‘The authorities in Jersey have been extremely helpful during these investigations, particularly in advising of their experiences in dealing with issues such as exemptions and zero-rated items.’

Treasury intends to take a States report on the specific issue of GST to the States in the autumn.

‘It remains my view that such a tax will remain avoidable in Guernsey if our economy continues to perform strongly and if States revenue expenditure remains under control.’