GST: States agree on 3% tax for April 2008

Wednesday 18th April 2007, 12:00AM BST.

EVERYONE will pay three per cent sales tax on virtually everything they buy from next April.

The States decided yesterday to support by 33 to 10 the draft law that will make the long planned goods and services tax a reality. And the vast majority of the proposals put forward by Treasury Minister Terry Le Sueur were accepted by Members. However, the debate was due to continue today, when a decision will be made on whether GST will be priced on individual items or charged in total at the till. The new tax, which it is estimated will raise £45 million each year, will be fixed at three per cent for three years after its introduction. However, St Brelade Deputy Peter Troy suggested the tax could raise at least £50 million a year if Jersey mirrored the Isle of Man, which has a smaller economy, and where VAT raises £12.5 million for each one per cent.

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