Tobacco, alcohol and fuel duties in Guernsey rise above inflation

Tax and duty increases on petrol, alcohol and tobacco have been approved by Guernsey States.

Politicians have approved the budget for 2022, after a morning of debate which saw no amendments to the plans.

Tobacco duty is rising by 7.5%, while Tax on Real Property (TRP) and alcohol and fuel duties will rise by 4% - above a 2.5% anticipated inflation rate.

The tax-free personal allowance is to increase with inflation by £300.

Deputy Mark Helyar, treasury lead, said: "It's only been a morning's debate and I expected a little bit longer. I'm delighted though and I think it reflects that we've done things differently and everyone knew what to expect and there weren't a lot of contentious issues."

He said: "As part of the Government Work Plan all the States members have been through what they want to spend on this term's priorities and as part of that we agreed a funding plan, which was to raise £1m, which we've done."

Income tax allowances are also set to increase next year, by 2.5% - lower than the current rate of inflation.

The debate did include criticism of the Committee for Policy and Resources for not finding a replacement for fuel duty, as the revenue from the tax on petrol is still decreasing as people move to electric vehicles and more fuel efficient cars.

Former Chief Minister Gavin St Pier said: "The inaction on bringing forward the overdue proposals to replace motor fuel duty is really starting to play out at pace... swift action is needed now."

In response Mr Helyar said Policy and Resources is looking to find a replacement by July next year.

"Boring and quiet" or "lacking ambition".

There are really two ways of looking at this budget, and it often depends on which side of the States assembly you are coming from.

This could have been an opportunity to start addressing some of the long-term issues Guernsey is facing financially.

Instead, those decisions are deferred to next year - for an all singing and dancing debate on tax.

The question is, does this States have the ambition to address the issues which have been in the rear view mirror for a long time?

Or like the replacement for motor tax, will it be filed in the "too hard" cupboard and bumped on to the next assembly?

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