Local VAT ‘a stupid thing at moment’
Tuesday 21st September 2010, 11:30AM BST.
AN AMENDMENT to bring in a sales tax is a stupid thing to do at this time, a representative body of the business community has said.
Deputy Mike Hadley has proposed an amendment to the States Strategic Plan that would see a 3% goods and services tax brought in. He says it is needed to help reduce the island’s £42m. structural deficit. But the motion, seconded by Deputy Rhoderick Matthews, was yesterday dismissed as premature by a number of senior deputies.
Political pressure organisation the Guernsey Reform Group added its belief that it would be ‘entirely wrong’ for the States to adopt a GST without having first proved it could curb government spending.
And Chamber of Commerce president Julian Winser (pictured) agreed it was too early for the States to be discussing the move. ‘I think it would be a stupid thing to do at this present moment,’ he said.
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Well nobody could say that the states are overbright (proof not needed see track record) if there are savings to be made, start with closing down totally useless non productive agencies like O,U,R ,environmental health,data protection office,and the post of lt governor ,oh and cancel the leather sofas, carpets and curtains for the brothels ,sorry! brussels office, savings of millions to be made rather than the pathetic closing of toilets
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Arapaho is right. Sadly, bureaucrats measure success by the size to which they can “grow” their departments – empire building – pure and simple. That the non-productive sector of society, that is, bureaucracy, simply cannot see that it is they who need to cut back isn’t surprising. Look at the now ex-Soviet Union. Eventually the sheer weight of bureaucracy sunk it. As Arapaho suggests, scrap all but those very few bureaucratic groups who REALLY contribute to the well-being of us all, and we would all be the better for it. Remember, the government that governs best, governs least is an altruism.
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Fred: “the government that governs best, governs least is an altruism.”
No Fred, I think you’ll find that is a truism.
Anyway, I agree that VAT/GST should be looked at only once we have trimmed the fat off all States budgets. The Brussels office is indeed a tragic waste that will prove to be a total ego trip however hard they try to justify it.
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My appologies Beanjar, the word I should have used is axiomatic.
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The states should be looking at charging enough corporate tax till fill the black hole.If not it should be got through income tax aimed at higher earners,Sales Tax would hit the poorest people most and should be avoided.
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I Le page, I think you are wrong in implying that Sales Tax would disproportionately hit the poorest. There are plenty of States house tenants with the money for Flat screen TV’s, Mobile phones, nice cars, expensive holidays etc. Equally there are many people on a normal income struggling to pay their own way which is not easy when you are losing a lot in tax and social security payments. If essentials such as basic foods, children’s clothing and power were exempt from GST I think it is fairer to tax spending on luxuries than on income needed to pay for essentials. Think of those in the ‘black economy’ who avoid income tax – they will have even more incentive to freeload if it rises. It would be harder for them to avoid GST wouldn’t it?
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Julian is right. If you want to kill off small businesses and any form of entrepreneurialism in what is a very expensive island to trade in then introduce GST.
The poor will be hit by the lack of job availability not just the 10p on a bottle of Fairy.
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Why don’t the states sort out their own departments before hitting the public? There are plenty of Civil Servants on far too much money, halve their wages and you’ll be halfway to saving 42mill!
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