Tue, 07 Oct 2025

Tue, 07 Oct 2025 Vape tax plan confirmed in Guernsey 2026 budget

Policy and Resources publishes its 2026 budget, including plans to raise £1.2m in new revenue.
The Policy and Resources (P&R) department has proposed a budget for 2026, which includes tax breaks for landlords and increases in taxes on vaping products, cigarettes, and petrol. The States face a deficit of £48m, but P&R President Lindsay de Sausmarez stated that "long-term structural balance must remain the primary focus" despite only proposing £1.2m in revenue-raising measures. The budget includes:
* Increased tax relief for landlords to boost property maintenance
* Higher personal income tax allowances, increasing by £600 to £15,200
* A new tax of £2.20 per 10ml of vape liquid
* Above-inflation increases in taxes on cigarettes (13.7%), petrol, and domestic property tax (8.3%)
* Commercial rates set to increase by 5%
* First registration duty going up by 8.7% De Sausmarez blamed a shrinking working population, increased demand on health services, and people living longer for the island's financial challenges. Committee presidents have reacted positively to the budget, with Deputy Steve Williams saying it was "positive support in a tight financial climate." However, President of the Scrutiny Management Committee Andy Sloan will not be voting for the budget, stating that it is not fiscally responsible and does not address the island's £115m funding shortfall.
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