No GST on food?
By Ryan Morrison
Proposals by the Council of Ministers suggest that GST on food should be zero rated.
Islanders may no longer be charged GST on food from next Spring.
The Council of Ministers has decided to scrap the sales tax for food because of increasing prices, but won't do so for domestic fuel.
Instead those that need help heating their homes will have winter fuel payments increased and the tax on petrol and diesel won't go up in next years budget.
The government says it's expecting to get £5 million more from GST than expected and wants to help islanders facing higher food shopping bills.
The full list of proposals to help islanders hit by the increase in fuel and food costs include:
This announcement comes after a proposition lodged by Deputy Labey called for a zero ratings of GST on food and domestic fuel.
Although the Council of Ministers support the zero rating of GST on food, they are opposing it on domestic fuel.
In a press release the Council of Ministers stated that “zero rating domestic fuel would have most benefit for people with large houses and swimming pools, but would have much less effect for people who already cannot afford to properly heat their homes.”
It went on to explain that the intention was to increase winter fuel allowance and invest in home insulation instead.
The Council of Ministers have always argued for a simple, low, flat rate of GST to make it as simple as possible to administer, however they have said that, although that goal remains as relevant today as ever – a response was needed to the increase in food prices.
They have said that “removing GST on food will have a direct effect on costs for everyone.”
Over to you
What are your thoughts on the removal of GST from food? Should it be removed from domestic fuel as well or is the decision to invest in insulation a better option?
What other measures would you like to see the States of Jersey introduce to help islanders being hit by the increase in food and fuel costs?
last updated: 22/08/2008 at 10:44
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