THE Jersey Chamber of Commerce has reluctantly concluded that a sales tax in Jersey is probably ‘inevitable’.
They suggest it should be applied across all goods and services - including food and children’s clothing - but that financial services should be exempt or considered separately.At the same time they say there are ‘major and unresolved’ concerns about the impact on Jersey’s rate of inflation, especially in the short term as businesses pass on costs to the consumer.
The Chamber - which represents all sectors of the Island’s business community including retail, tourism, and the finance industry - has today issued a 12-page report broadly supporting the Finance and Economics Committee’s consultation paper on tax reforms.
Finance are proposing to introduce a five per cent goods and services tax in 2007, which they estimate will bring in up to £45 million in revenue.
The committee has also suggested that if the Island’s deficit proves to be higher than anticipated, the States should consider increasing that tax to a maximum of 7.5%.But the Chamber says it will not accept a sales tax of more than five per cent, in the first three years, and are insisting that if a tax is introduced it should not increase by more than one per cent in the following two years.
Article posted on 26th March, 2004 - 12.00am
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