Gavin St Pier, Guernsey’s Minister for Treasury and Resources, recently spoke about the direction the Government intends to take on the economy and fiscal reform.
In a recent address to the Chamber of Commerce, he said: “All the metrics – inflation, growth, unemployment, confidence, employment numbers, a balanced budget – are all relatively good. Over the past three and a half years we have put in place the foundations on which to ‘build the new.'”
Banking deposits have seen a slight increase, after having been in “gentle” decline since 2009, St Pier said, and the insurance sector continues to grow, with employment increasing by more than 10 percent since 2011.
He said the Government is to look to reform how it collects tax and social security contributions, with the Government seeking to recruit a new Director of Income Tax to drive those reforms. Digitization is another area that is being focused on, he said.
He said Guernsey will seek to balance the budget in 2016. This will be achieved by extending the scope of corporate taxation to increase revenues by about GBP15m (USD22.8m) each year, and the Government will look to boost personal income tax allowances for low- and middle-income earners through the removal of concessions for higher income earners. This is aimed at ensuring that higher earners pay an effective 20 percent rate, he said.
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