GST exemptions opposed

Monday 30th March 2009, 2:00PM BST.

TWO business groups have spoken out against the proposed changes to the Goods and Services Tax, before the States debate tomorrow.

Both the Jersey Chamber of Commerce and the Jersey branch of the Institute of Directors say that GST should stay as it is and that if it is removed from food and utilities – as proposed by Grouville Deputy Carolyn Labey – it will cost businesses dear, at a time when they are already struggling.

Deputy Labey wants the States to make exemptions for all foods that are exempt in the UK, together with household electricity, oil and gas, to help the less well-off.

But IoD chairman Gary Drinkwater says this would be ‘counterproductive’ and that the best way to help poor families is through Income Support and benefits. David Warr, who chairs the Chamber of Commerce small business group, said he was disappointed that none of the politicians supporting Deputy Labey’s proposal had bothered to ask small firms about the impact of the proposed exemptions.

• Picture: David Warr

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1
annie du feu

March 30, 2009 at 2:51 pm

Surely putting GST on just some things is going to cause lots of work. It should either be all or nothing (with a new tax to replace the income).

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2
Boris

March 30, 2009 at 3:41 pm

and we will not benefit; can you see retailers taking three percent off the price of food, they will just keep it and the consumer will not see the benefit

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3
Lesley

March 30, 2009 at 6:20 pm

What do they mean firms will struggle. They pay the GST over the States, it’s not money in their takings. GST should be the same as in the UK. The UK doesn’t have a problem pricing, why should Jersey be different. It is the middle earners that suffer, lower incomes get benefits, higher earners are not affected. Food should never be taxed.

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4
Donna

March 30, 2009 at 8:14 pm

Why not follow the Uk system where food is exempt, after all it is a necessity and it is just getting more and more expensive with the GST, it already was pretty expensive. Don’t know about you, but I would quite like to be able to eat.

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5
carolyn

March 30, 2009 at 9:19 pm

Businesses will struggle because the majority of businesses in Jersey have less than five employees. All goods have to be re-priced, all tills re-programmed, accounting package will need re-programming and that is just the beginning.

ITIS and the GST have been hugely expensive for small businesses and I from what I have heard business owners would rather the situation is left like it is with the “extra” money going to those who need it rather than the businesses incurring hude costs.

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6
Outsider

March 30, 2009 at 10:28 pm

GST on food is criminal. I am lucky in that I earn quite a good salary and a few extra pounds doesn’t hurt a great deal. But there are thousands of people less well off, particularly in the current climate who would really benefit by some brain-power being engaged in relation to GST. How much GST has been collected on food thus far? I’ll guarantee it’s a negligible figure.

Another one I find abhorrent is the addition of GST to books – effectively a tax on education.

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