Guernsey one of the Smallest Country in the Europe Is the new addition in the countries where GST Is applicable.
The Policy and Resources Committee proposals also suggest a new 15% income tax band on income up to £30,000.
They also suggest a £600 increase in personal tax allowance and a restructure of the social security contribution system.
President of Policy and Resources Peter Ferbrache said: “The majority of our population will be marginally better off and the poorest won’t be worse off.
“If services were cut I would try to protect health as much as possible, as people’s health is the most important thing, but it is also the most expensive thing.
“If the States say they won’t increase taxes, I wonder what we will do. We would ultimately have to borrow money and I don’t think that’s a practical alternative for a small community like Guernsey.
“A lot of people saw corporate tax as the panacea.
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