Annual road tax to be explored in Guernsey

Guernsey is exploring introducing an annual road tax to be brought in alongside a drop in fuel duty.

Environment and Infrastructure (E&I) said it was looking at potential transport taxes as part of the wider work on tax reforms.

On Tuesday, a Policy and Resources (P&R) report found corporate tax reform was not a "silver bullet" as it could not deliver sufficient revenues to address an estimated £77m deficit in Guernsey's finances.

The annual charge would apply to all vehicles, including electric ones, to make it fairer than a fuel duty. E&I said a surcharge on the first registration of high value vehicles was also being investigated.

E&I president deputy Adrian Gabriel said a new road tax would not be one flat rate and would vary depending on the vehicle.

He said: "There's going to be different bandings for your weight or even what emissions your vehicle is emitting.

"A clean electric vehicle, for example, emitting zero on the roads will be paying less than an older vehicle."

Gabriel added: "Whatever charge comes in, if of course the assembly chooses to do that, then that charge for annual vehicle ownership should be offset at the pumps, it shouldn't be charged twice."

P&R will decide whether it takes the idea forward in its final proposals.

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