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Due to the close association of Guernsey's economy with that of the UK, the cost of living is broadly similar to that in the UK. Higher transport costs tend to make certain imported goods slightly more expensive but the absence of value added tax cancels out these costs on items that would bear such indirect taxes elsewhere. On higher value goods and items which bear an additional rate of duty elsewhere, e.g., cars, wines, spirits, perfume, tobacco, etc, prices in the Island are noticeably lower. With limited scope for motoring and petrol taxed at a low level, the proportion of its income devoted to transport costs for a family which does not travel away from the Island frequently is much lower than in the UK.
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