Shopping online is set to become more expensive from the autumn, instead of next year, with the Treasury Minister bringing forward GST changes in a bid to encourage islanders to shop local.
Treasury Minister Deputy Susie Pinel has announced that the ‘de minimis’ level will be reduced from £240 to £135 from 1 October this year, meaning that anyone ordering goods from outside Jersey must pay GST if their order costs more than this.
It was originally planned to come into effect on 1 July this year, but the Minister deferred this until 1 January 2021 to ensure islanders relying on home deliveries during lockdown weren’t unfairly penalised.
But now she has decided to change the date again, bringing it forward by three months.
Explaining the rationale for the change, Deputy Pinel explained: “As we are opening up the local economy, bringing down the ‘de minimis’ level will enable on-island business to compete more fairly with off-island retailers, supporting our local economy."
Additionally, plans to charge interest on new tax debts has been pushed back until 1 January 2022 at the earliest. This means that businesses and individuals will have interest applied if they underpay their taxes and fail to pay it back by a certain date, if the debts are incurred after 1 January next year.
Pictured: Minister for Treasury and Resources Deputy Susie Pinel.
Speaking about her decision to push this measure back, the Minister remarked: “I have also decided to defer charging interest on tax debts in recognition that many businesses and individuals will suffer financially due to the pandemic at least in the short term.”
Commenting on the changes, Chief Executive Officer of the Jersey Chamber of Commerce, Murray Norton, said: “We are delighted that the Treasury Minister has chosen to support local retailers at such a critical time. Deputy Pinel announced this reduction in her last Budget and we fully support her decision to implement it in time to help retailers recover from the covid-19 crisis.
“Making the change from 1 October will afford local retailers the best opportunity of securing a good quarter’s sales in the run up to Christmas. Jersey Chamber of Commerce urges all islanders to support local retailers as much as they can in these unprecedented times."
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