Groundhog Day for GST
Wednesday 25th March 2009, 3:00PM GMT.
From John Henwood.
IN the film Groundhog Day actor Bill Murray’s character finds himself condemned to live the same events over and over again.
Having read Deputy Carolyn Labey’s proposal to remove GST from food and domestic heating (JEP, 13 March) I know exactly how he felt.
This will be the fifth time the States has debated exemptions, the last one having occurred what seems like yesterday. Granted the rare privilege of two pages to set out her case, it was disappointing that Deputy Labey could not put forward a single new argument in support of her proposition.
So why go there again? The answer seems to lie in political opportunism. Candidates at last year’s round of elections tut-tutted about GST because that’s what candidates do about taxation at election time and Deputy Labey admits trying to capitalise on that effect. That does not seem a very statesmanlike – sorry, in this politically correct era that should be stateswomanlike – use of government process.
On the topic of PC, were Deputy Labey to succeed how long would it be, I wonder, before Dr Rosemary Geller, Jersey’s nanny, called for the reintroduction of tax on crisps, sweets, chocolate, biscuits, cake, cream, butter, burgers, chips – in short all those foods containing what she regards as unhealthy quantities of salt, sugar and fat.
Deputy Labey contends that her exclusions would not create additional administrative cost; on this she’s wrong. The Treasury estimate three additional civil service posts, so we’ll have that cost to start; previous experience suggests exclusions will create a far greater burden, just as they have in the UK, where the infamous wrangle as to whether a Jaffa Cake was in fact a biscuit ran and ran while the cost of legal advice mounted ever higher. That’s what happens when you start to pick and choose exclusions.
Let us not forget where all this started, with a need to raise additional revenue. That need is greater now than when the draft fiscal strategy first mooted GST as the ‘least worst’ option. No one wants new taxes, but GST has been introduced with the minimum of fuss because it was kept simple, and simple it should stay.
One final point: with GST universally applied, everyone in Jersey, income taxpayer or not, makes a contribution, however small, to the cost of the public services we all consume. That is an important step on the road to a truly inclusive society.
The States must break free from Groundhog Day and move on to new and more important business.
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I have to agree – GST has been introduced to raise much needed revenue, and at its low universal rate, there is no point in now agreeing to exemptions. Virtually every other jurisdiction has some form of sales tax in one form or another.
Personally, I would rather live in a low tax / low benefit society, but it would appear that the majority want bus passes for the elderly, free nursery places for the under 5′s etc etc. Contrary to popular belief, money does not grow on trees, it has to be raised by taxation !
Can our elected representatives please move on to more pressing business.
And for those residents who STILL question the necessity of GST, just look at the mess Guernsey has got into.
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Don’t waste your ink John. It’s not just GST we’ve had Groundhog Day with – same applies to pretty much everything that is debated!
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“Virtually every other jurisdiction has some form of sales tax in one form or another.”
Yes, but virtually all of these jurisdictions have a progressive tax regime in place – i.e. bandings where the more you earn, the higher the rate of the banding.
The problem in Jersey is that a selected few, including our Chief Minister, believe that it is immoral to increase the already paltry tax rate of the rich in Jersey, but would prefer instead to add misery to the poor.
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It is about time the very rich were taxed at 20% like all the other tax payers, or do they have diplomatic immunity unlike the rest? I believe if these select few paid a proper rate we wouldn’t have needed GST, now wouldn’t that have been the fairest way to solve this issue? Instead those in government decided to tax old age pensioners on all their necessities. How many elderly will die from hypothermia because of this poor decision of the states?
3% on everything is a lot to those on £200 a week. It is negligable to those in the top 100 over here who will buy off island anyway to save a few pounds.
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