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Deputies to investigate possibility of environmental taxes

Deputies have agreed to investigate the introduction of environmental taxes as part of sweeping reforms to Guernsey's tax, pensions and benefits system.

It's day four of the debate which has already seen a possible GST ruled out.

Now Environment Minister Deputy Yvonne Burford says an 'environmental' tax would either be a 'broad-based carbon tax or a tax on vehicles'.

Environmental taxes currently make up approximately 2.9% of the total tax and social contributions income.

For comparison, the EU average is 6.2% with some countries at 10%.

The substitution of environmental taxes for other taxes would assist the stated aim of diversifying the tax base.

The mildly regressive impact of a carbon tax or similar could be compensated for by a comprehensive energy efficiency programme which would reduce energy consumption, improve the housing stock and address health issues resulting from poorly insulated and under-heated homes.'

– Deputy Yvonne Burford, Environment Minister