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Guernsey deputies propose GST exemption for food

Getty Images Woman carrying a basket of food in a supermarket fresh food sectionGetty Images
Deputy John Gollop said a 5% GST on food would hit families the hardest

Proposals to exempt food from a goods and services tax (GST) in Guernsey have been put forward by two politicians.

Deputies John Gollop and Aidan Matthews said the exemption from the proposed 5% tax would "significantly help public acceptance of tax reform".

They are also asking for an exemption for clothes and books sold by locally registered charities.

Policy and Resources (P&R) plans to introduce a GST and income tax changes amid a projected budget deficit.

Man stood outside Beau Sejour theatre entrance
Bruce Bell said he supported the P&R proposals ahead of any of the proposed alternatives
Man stood in leisure centre foyer
Gary Tapp said he did not see any viable alternatives to introducing GST

It has been holding a series of public presentations on its plans - the latest was at Beau Sejour on Tuesday evening and was attended by 15 people.

Bruce Bell was among and said he was supportive of P&R, "depressed with the amendments" that had been put forward and believed P&R's proposals were "thoroughly thought through".

Gary Tapp, who also attended the meeting, agreed: "I don't see any viable alternative to GST. I don't think GST is great, but what alternative do we have?

"You can't cut services to the amount the deficit is predicted, and I don't see the other proposals as something which can be considered."

St Pierre Park meeting
About 150 people attended a meeting on proposals to reject GST and investigate generating more taxes from businesses

The call for an exemption from Deputies Gollop and Matthews follows a meeting of about 150 people on Monday about proposals to reject GST and investigate generating more taxes from businesses.

Mr Gollop said he had put the exemption forward as he believed "GST on food will hit families hardest".

Policy and Resources President Peter Ferbrache said the proposal "was helping the rich and not helping the poor".

Deputies will debate proposals for tax reform between 25 and 27 January.

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Analysis: BBC Guernsey Political Reporter John Fernandez

I've been bashing the phones at BBC Radio Guernsey, and the signs aren't good for P&R.

Sixteen deputies have told me on the record they won't be supporting plans for a GST, while others remain undecided - leaning slightly towards the Soulsby/St Pier plan for a review of States spending.

The proposals face eight amendments and a delaying motion, which means a decision will be coming late in the day Friday, if at all when push comes to shove.

But the next week will be crucial as P&R tries to convince those wavering colleagues that their plan is the way to go.

Otherwise, the island's most senior committee will be facing a vote of no confidence before we hit the halfway point for this assembly.

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