MINISTERS have been forced into an embarrassing U-turn on GST exemptions.
Faced by the prospect of a defeat in the States over exempting food just weeks before the elections, they have agreed to mirror the UK system of exempting non-luxury food items from the 3% sales tax.
And they will freeze duty on petrol and increase the winter fuel allowance – which they initially fought against – by 20%.
The long-expected move, announced this morning, follows food inflation of 13% in the last 12 months and fuel inflation of 26% over the same period.
This morning, Chief Minister Frank Walker announced that at yesterday’s crunch meeting on exemptions, ministers had decided to bend.
Article posted on 23rd August, 2008 - 8.25am
13 Article Comments
At last some common sense has prevailed! The shops will be over joyed at having to re-price everything again, or will they simply leave things at the post GST level? I suspect the latter. Nice one Terry et al!
Just in time for the elections. I hope this decision doesn’t fool any voters. Too little too late in my opinion
Yeah nice one guys. Is anyone actually going to put their prices on food back down? (Can’t see it myself.)
Well, that’s nice of them. Pity it’s too late. Does anybody really believe shops will lower prices now, I certainly don’t.
So does that mean the pricese go down by 13% for food and 26% for fuel?
Next year?
If the idiots had insisted that GST was put on at the till then it could be stopped on 1st September with minimal cost or disruption.
Come 2009 no doubt ‘presiding economic conditions’ will mean this will never happen. It is electioneering.
It’s too late! Election times coming and they are all going, no exceptions. They showed contempt for the people, they will go down in history as the most despised group of people this Island has ever seen.
I agree with Peter they have told us just in time for the elections but will they actually take GST off, I don’t think so. I also hope this doesn’t fool any of the voters.In my opinion it’s just a way for them to try and gain our vote, it will not work with me. We need new people in.
The fun and games start !! What will they classify ‘luxury’ & ‘non-luxury’ food items and how long will it take to publish the decisions and act on it? HMRC have been locked in a dispute with M&S for 10 yrs debating what classification tea cakes were !!
Why call it GST? You may as well call it VAT, the rules will be identical soon…
It is interesting that the proposalis that GST on food will be scrapped from next spring! Why next spring?
Being slightly cynical, I may suggest that:-
- certain politicians may claim that they have reduced inflation (having put it up in the first place)!
- this will tie in nicely with the RPI figures,which should show a reduction, and the figures on which the States base certain increases.
Or am I being too cynical?
Par for the course with this lot!!
Please remember all these things at the coming elections!!
If they are Ministers now, for heavens sake, DON’T vote for them
A lot of people said no GST on food I agree. They said we must, we need too. Let me tell you WE DON’T , this just shows how much (they) know what (they)are talking about. I want to like them but I can’t , a government that don’t listen to its people its no good - end of story. We dont want you. We don’t want food allowances thank you,we need money in our pockets so we can lead our lives, the way we want. If you can’t gives this then I suggest you look for the right job for you, and give other people a chance to make a difference. To all viewers our politics not all them but there are a few that now have it all but once they had as much as me (nothing) , I can ashure you thats not in forty thousand a year , mabe we are to kindly ask this people to publicly declare we there money comes from and its not ( backhand )
PLEASE Please DO NOT VOTE for these Muppets! There are only doing it to save their own skin. They should brought to order at a public hearing in the Royal Sq. REMEMBER that not all food will be exempt and they are not willing to introduce this respite immediately, they will be the usual SPIN, SMOKESCREEN of excuses and until they declare their own interest in all those pies they should not be allowed to run for government.