The proposal to limit an increase in fuel duty in Guernsey’s 2026 budget has been rejected by deputies, with a vote tally of six in favor and 30 against. Deputies Jayne Ozanne and Liam McKenna had suggested increasing fuel duty by 2.3% instead of the planned 4.3%.
During the debate, Ozanne expressed concerns that the budget lacks provisions to support middle-income residents. In response, Policy and Resources (P&R) President Lindsay de Sausmarez stated that the budget does address cost-of-living challenges, including a £600 increase in personal income tax allowances aimed at assisting individuals facing financial difficulties.
De Sausmarez further noted that her committee, in collaboration with the Environment and Infrastructure committee, is evaluating potential reforms to transportation taxes. This indicates a broader initiative to reassess how fuel taxation impacts different segments of the population.
Ozanne remarked that she had received feedback from several members of the public who believe the existing fuel tax system is inequitable. She highlighted concerns that the current policy disproportionately affects those who are unable to afford electric vehicles, asserting that placing an additional tax burden on this group is unjust and irresponsible. This raises questions about the fairness and effectiveness of the existing fuel tax framework.
Source: https://www.bbc.com/news/articles/c77zkvk0117o?at_medium=RSS&at_campaign=rss