3% GST rate freeze proposal defeated
Wednesday 29th September 2010, 2:59PM BST.
Deputy Geoff Southern.
PROPOSALS to freeze GST at 3% until 2013 have been defeated in the States less than a month before tax rises are proposed in the Budget.
States Members voted 29 to 21 to reject the proposal to freeze the controversial sales tax, which was part of an alternative deficit package recommended by Deputy Geoff Southern.
Debate on the proposals – which included dealing with the deficit over five years not three, and using interest from States reserves to help fund the delay – took just two hours, with most parts of the proposition defeated by heavy margins of between 20 and 30 votes.
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So GST is going up, hands up those who are surprised – how long before it’s the same as VAT?
I just wish our politicians told us the truth from the start instead of shafting us by degrees hoping we won’t notice.
Everyone know this would start at 3% and go up ( and up ) it was just a metter of when and how much.
I’m going to cut out the middle man and transfer my wages by direct debit straight to the government.
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I would love to see Southerns ‘alternative’ proposal. He had a resounding defeat at the Senatorial elections, which will ikely be followed up at the next Deputy elections – why? Because he jumped into bed with the Union hacks to hurt the economy.
Glad to see States members makign the best decision and put these stupid proposals in their place. Stop wasting taxpayers time Southern, all your proposals get defeated. Come up with something other than ridiculous proposals!
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Yeah – first the interest and then the reserves themselves. Geoff won’t be happy until the rainy day fund is out of the bank and into the pockets of the people. Once people have spent it and the Island has no reserves what then?
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Lucky you lot! The VAT on the Mainland is going up to twenty percent in January! Nearly a quater of the price of any goods or services, with a few (And decreasing) exceptions.
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Will it bother me that much, no. I’ll just use the internet for more of my shopping, with the likes of Amazon who now offer food and fresh meats to your door. Another nail in the coffin for think local, buy on the internet!
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What a surprise! Anyone who thought that GST would stay at 3% was deluding themselves and there are unlikely to be few, if any, exceptions to this tax as the precedent has been established.
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Post 4. you think we are lucky with just 3% but a lot of goods in shops can be bought cheaper in the mainland shops even with the higer VAT rate!!!
Increasing the GST will kill their Think Twice Buy Local stance. It will kill smaller independant retailers who will eventually have to drop prices to compete with online shops and the margin wont be worth staying open for.
With the 3% GST levied on all imports over £400 why not lower this level to say £100.00 things will still be cheaper off the net so people will still be getting a better bargain than locally. I believe the limit of stuff brought into the mainland is £18 then VAT is payable.
I know they are trying to fill the hole in the wallet but there are other ways.
A friend told me that a residents permit where he lives costs £19 a month. Now unless I am wrong and somebody correct me. These resident spaces are not land belonging to the residents but spaces that were display and pay. These permits should mirror the cost of pay and display…there a small sum of money in the wallet.
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Quite a few island businesses that are branches of UK firms already take the VAT as an extra bit of cream to recompense themselves for the hassle of operating in Jersey and then put GST on top!
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Typical,,, stealing from the islanders because they cannot do their housekeeping correctly,, in the private sector this bunch of inept muppets would be un-employed
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I’d be happy for GST to reach 20%!
I shop online for all non-food items anyway.
If we raise GST to 20% it might persuade 5,000 people to leave Jersey & a reduction in population is what we all want
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How else do you propose that the states purchase there latest sculpture to celebrate the Jersey cow
A giant bronze cow poop!
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4 Tiony B – “lucky you lot” – please ensure brain is engaged before operating mouth as my old gran used to say.
UK – bread from 30p milk from 40p to name but two, in Jersey whether you’re a millionaire or on minimum wage bread/milk is the same price to all, there is no CHEAP option, because of the local monopoly !!!
If you live in the UK you can get the cheaper option at the supermarket so have the opportunity to survive on a lower wage which is something the politicians in Jersey will ensure never happens here!!!
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Is it just me, and I apologise if this has been raised before but surely the easiest way of voting out the current bunch of hopeless States Members is to get people to stand who have nothing to gain personally.
I’m sure we could find enough semi retired/retired/self employed people who care enough about the Island who could stand on the ticket of “I won’t take a salary” and provide a representation in The States. This is how it used to be is it not? I would certainly vote for the candidate who offers his expertise over the likes of the current lot who are only in it for what they can get.
Rant over. Think about it though.
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This announcement marks the last time I shall ever contribute to the plethora of charities for whom I am so used to coughing up cash.
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Mulvie Le Phew #1
The States never said GST wouldn’t rise above 3%. What they actually said is that GST would be capped at 3% until at least 2011. The only people a GST rise has snuck up on are those that don’t pay attention.
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no. 10 Darren
If you think adding 20% to the price of goods is such a great idea why don’t you pay an extra 20% of your income straight to the government and leave GST where it is.
Everyone with half a brain knows that GST like VAT is a tax that hits those people who can barely afford to put food on the table in the first place.
I’m sure you would not be so blaise if you had to give up a week of nights out on the town or had to downgrade the house you live in because you didn’t take home as much money.
Why dont you sit down and work out how worse off you would be if you had 20% less money in your pocket every week. This is the reality for those people on minimum wage. They spend 90%+ of their income on just staying alive and living, i’m sure with your attitude you probably spend 90% of your income dining out and having fun.
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Our island is being run by greedy dimwits.
They have ruined and are continuing to ruin everything i ever loved about this island.
The price of bread and water has gone up…makes La Moye sound like a decent option!
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with talk in the air about a raise in the minimum wage of two %, any bets its a 3%rise.
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Idiots. You will make more and more people leaving Jersey. VAT in the UK is high but costs of living are much lower. It is expensive already in Jersey. Why they didn’t agree to froze their wages? One name for that: thieves.
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go into shops in jersey try out the product try on the clothes then buy on line. Raising tax will be detrimental not effective. Look at the civil service first there are so many incompetent time wasters employed but why is nothing being
done about them ?
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It seems lots of people on the island buy things on line. Perhaps instead of an increase in GST there could be an import tax of say 25% on all mail orderd or internet items.
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We have got up to comment 20 without anyone making the most important point. So I will.
The proposition was meaningless. No elected body is capable of binding its successors. As a matter of law, even if the proposition had been approved, if the States wanted to increase GST within the stted 3 year time limit, they could do.
Southern should stop wasting time.
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#21 Is this to meet their pay rises?
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I cant wait to leave Jersey and am praying for that day of FREEDOM from tyrany & corruption.
If only they could get that boat in the morning fixed,then it will be bye bye baked beans.
Off to Sunny climbs YAHOOOOOOOOOOOOO!
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Donald Pond, we really are getting more and more alike…. your comments are spot on. Any politician will talk abotu their view at that point in time. Anyone who thinks otherwise has clearly been hiding in their cave too long. The troglodytes I appreciate are everywhere on this blog, but sometimes even I am amazed how many there are… perhaps TRUTHSEEKER is breeding!
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Only the comfortable will be happy with this.
Increasing food prices will put increased pressure on poorer families and possibly move them towards eating cheaper, high calorie, low nutrition foods. This could create as many problems as it solves.
Also, I love the fact that the states members wantthe public to bail out the island for the mistakes they have made with the public’s money. If there’s a deficit take it out of the reserves and make some savings. Stop wasting money on unnecessary things and concentrate on getting the island on track in a way that suits everyone, not just the ones that can afford it.
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#21 Why? Some things simply cannot be bought in Jersey!
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We are all doomed I tell you. All doomed. The lunatics in the States have taken over the asylum…..we are all doomed.
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No thanks – we already paying enough tax that is used for highly paid civil servants and payments to people who produce children they cannot afford.
This has to stop
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Let’s not forget the inflationary pressure any rise in GST would have as it feeds straight into the cost of the standard basket of goods. So, GST goes up, inflation goes up, wage demands go up, price of goods has to go up to cover the extra wages… As stated, Jersey is already comparably expensive so this would not help in the slightest.
I do hope this has been considered as part of any plan to raise GST, no matter whether it’s to 5 or 15% or whatever figure is decided upon.
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Have never read anything like it. You live on a beautiful island, and all you lot do is moan, trying living in the UK on a wage of £285.00 per week (and i get no benefits etc) and then you would have something to moan about. All you lot ever do is complain about outsiders taking your jobs/houses etc, well get off your backsides and go for the jobs etc yourself
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Anon, as the saying goes ‘You can’t live on a good view’. As for food in UK costing less. That is purely down to the fact that a small area in Uk has more people, and a lot more supermarkets fighting for buissness. Even Waitrose is now advertising branded goods as the same price as Tesco. The result is that a monopoly appears. Those on the rock should be used to that. Agriculture is still dependent on the weather. Yeilds this year are low. The down side of cheap food is that someone, normally the producer has to pay for the production. The oil companies, fertiliser companies, put their costs up, distribution companies pass the cost on, the shops costs go up, the end user. You and me, don’t want to pay for it. Ahh capatalism.
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#31 Some people live on that in Jersey with Jersey prices.
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