GST

A press release about the JEP and the introduction of GST in Jersey

At a confusing time in the shops when so many prices will be changing we thought we should help our readers and keep the price of the JEP the same - at 45p. So we will be paying the tax for our readers and absorbing it from our profits.

That might surprise some people who have speculated in States debates and in letters in the JEP as to whether the price of the paper would go to 46p or 47p.

But increasing prices doesn’t help sales - and the sales of the JEP are very good and we want to keep them that way.

Our strong sales throughout Island homes - the remarkable fact is that the average day’s JEP is read by 75% of Islanders aged 15 or older - mean that the newspaper works really well for advertisers too. They get terrific response to their messages - and advertising is the most important source of revenue for us.

So we believe we should do all we can to keep our sales strong and we have been planning for some time on the basis that when the tax on our cover price starts we will pay it on behalf of our readers.

We understand that from 6th May national newspapers and magazines coming into the Island will still have a UK price marked on them - which will not be the price charged in Jersey. It will have 3% added to it at the till. That may cause a lot of confusion.

There need be no confusion about the price of the JEP. It is 45p now and it will stay 45p after GST starts.

When it comes to our advertising rates, however, we cannot afford to absorb the GST. 3% will be added to the charge for all advertising published on or after May 6th 2008 - except for International Service Entities for whom all supplies are zero rated under the law.

Most of our trade advertisers will be able to reclaim the cost of this tax on advertising against their receipts of GST in the till for the goods and services they sell - so it won’t be an extra cost to them.

Our private advertising packages are being repriced to include GST but will remain exceptional value.

We have to rebook every advertisement already on our computer systems scheduled to appear on or after 6th May to add the tax. We are calling in a lot of staff working overtime over the bank holiday weekend to do this.

The computer changes necessary for GST and the overtime for rebooking advertising add up to a great deal of money - a cost to our business brought about by the introduction of this tax. All other businesses are facing similar extra costs for coping with the introduction of GST and collecting it on behalf of the government.

Ends.

Dated 28th April 2008.

Any further enquiries to Jerry Ramsden, managing director of the JEP and of Guiton Publishing. Telephone 01534 611623.