GFSB concerned about "tone" of Government Transaction Tax statement

The Gibraltar Federation of Small Businesses says it's concerned about the tone and framing of the Government's press release on the Transaction Tax.

It says it risks creating unnecessary tension between consumers and local businesses at a time of uncertainty ahead of the Treaty's implementation.

The GFSB says prices will likely go up, and that some businesses are simply trying to provide practical guidance to their customers.

In the lead up to the Treaty implementation next month, it says some businesses have advised customers that they may wish to consider placing orders ahead of the proposed 15% transaction tax and additional EU tariffs. This advice, it says, has primarily been offered as a precautionary measure to help customers mitigate or entirely avoid cost increases once the Treaty comes into effect.

It says while it's important that accurate information is provided to the public by  businesses, it's also important that public communications remain measured, balanced and reflective of the realities faced by traders on the ground.

This includes preparing customers for likely price increases, which is an entirely legitimate consequence of businesses adjusting to cope with a significant increase in duties under the Treaty.

The GFSB adds that businesses across Gibraltar are currently navigating a period of uncertainty, and many are simply trying to provide practical guidance to their customers while they themselves seek clarity on how the new arrangements will impact them. 

It warns that public messaging that is not carefully framed can position consumers against local businesses, which could undermine the ability of Gibraltar collectively to meet the challenges the Treaty brings.

The GFSB says it remains committed to working constructively with the Government to ensure that the transition to the new system is clearly understood by both businesses and consumers alike.