Motor tax

At its States Meeting to be held this week, the States are to consider a proposal to proceed with investigation of a ‘distance charging mechanism’ for motor vehicles on Guernsey’s roads.

In our survey, which concluded on Monday, 2020 members voted overwhelmingly (41%) to develop a holistic approach to energy, transport and revenue (which was the suggestion of the 2020 Association) whereas only 13% wanted the P&R preferred choice to investigate a distance charging mechanism. Results were as follows:

After consideration of the policy letter entitled ‘Taxation of Motoring’ dated 23rd May, 2019 States Members are asked to decide: “To agree, in principle, that a distance charging mechanism should be introduced as soon as possible and direct the Policy & Resources Committee to report back to the States with detailed proposals to introduce a distance charging mechanism.” Our members say ‘NO’, overwhelmingly.

Briefing Note 7

Given the foregoing, the obvious immediate & logical solution appears to be to retain the existing fuel duty arrangements (26% of votes), and probably adjust this to retain revenue level (21% votes).