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.
