Guernsey Eyes New Road Tax to Cut Fuel Duty

Guernsey is contemplating the introduction of an annual road tax as part of wider tax reforms aimed at addressing a substantial financial deficit. Environment and Infrastructure (E&I) is investigating new transport taxes, with the proposed annual charge intended to complement a reduction in fuel duty.

This potential new tax would apply to all vehicles, including electric ones, to ensure equitable treatment compared to fuel duty alone. E&I is also examining the possibility of a surcharge for high-value vehicles upon their initial registration. The proposed road tax would not feature a single flat rate; instead, it would incorporate various bandings based on factors such as vehicle weight and emission levels.

E&I president Deputy Adrian Gabriel emphasized that any new annual vehicle ownership charge should be offset by a corresponding reduction in fuel duty, preventing drivers from being charged twice. The final decision on whether to proceed with these proposals rests with the Policy and Resources (P&R) committee as part of their upcoming financial recommendations.