EXEMPTIONS to the new goods and services tax are still being considered by Finance and Economics on the eve of next week’s States debate on Senator Stuart Syvret’s proposals that it should not be levied on food, medical supplies and other essentials.

Despite previous indications from the Finance and Economics Committee that GST at three per cent would be brought in across a broad range of items, they now say consultants Crown Agents – who recommended the new tax – have been given a £1m contract to do two years of preparation work and consultation on the impact of its introduction.

The announcement of the appointment comes a few days before the debate on Health president Senator Syvret’s proposal to exempt basic essentials like basic food, children’s clothing, medical services and products and books and newspapers, which is listed for the sitting starting on Tuesday.

Finance have won States backing to go ahead with GST as part of a package of measures aimed at filling the £100m black hole caused by the zero-ten system in 2009.

They want a three per cent sales tax to contribute £45m as part of the package which also includes savings, phasing out of some allowances and economic growth.

Finance president Senator Terry Le Sueur, who like Senator Syvret is a candidate in this year’s Senatorial elections, said that the initial Crown Agents report recommended a broad-based three per cent sales tax – but that nothing was set in concrete other than the three per cent rate and £300,000 threshold.