Wednesday 20 October 2021
Select a region
News

Drinking, driving, smoking and online shopping to get pricier

Drinking, driving, smoking and online shopping to get pricier

Tuesday 21 September 2021

Drinking, driving, smoking and online shopping to get pricier


It’s going to be more expensive to drink wine and spirits, smoke, put petrol in your car and go online shopping from next year – but the price of a pint of beer or cider isn’t set to get any more costly.

Unlike the UK Government, which is raising National Insurance contributions to pay for social care, there will be no new taxes in Jersey next year.

However, the newly published Government Plan is proposing that existing fuel and tobacco duty should rise above inflation and – from 2023 – the threshold above which consumer pay GST on internet purchases should fall from £135 to £60. 

If States Members approve the plan, the most popular online retailers such as Amazon will also charge GST at the point of sale rather than when the goods arrive at Customs, as happens now.

The Government is not planning any across-the-board tax rises – indeed personal tax allowances are rising by 3.3% to match the average earnings index.

allowances.png

Pictured: Changes to allowances.

This means that the married/civil partners’ allowance rises by £850 to £26,550, which is, for the first time, the same allowance for islanders born before 1952.

The increasing allowances mean that islanders are £8m better off while the exchequer is down by the same amount.  

The Government is making up £4.9m of that shortfall, however, by raising duty on wine and spirits by 5% (bringing in £0.8m next year), cigarettes by 9.5% (£1.5m) fuel (£2.2m) and vehicle emissions duty (£0.4m).

VED.png

Pictured: Vehicle emissions duty changes.

For shoppers, this means a 75cl bottle of wine will be 8p more expensive, and the price of a litre of a spirit will rise by 85p.

20 king size cigarettes will be 65p more expensive (inflation plus a 6% increase in standard duty), while a 50g hand-rolling tobacco pouch will go up by £3.55 (inflation plus 10%).

Fuel will go up by 5p per litre, with 3p of this going towards the Climate Emergency Fund to help Jersey towards its ambition of achieving carbon neutrality by 2030.

Impots.png

Pictured: A summary of the impôts changes.

Looking beyond next year, the Government is riding on the coattails of a UK initiative to get online retailers to charge VAT at the point of sale. This means, with a tweak of their systems, large offshore retailers, such as Amazon, can charge 5% GST and then send it on to the Treasury.

It also means that Customs Officers in Jersey will have more capacity to deal with online items from other retailers, meaning that the level above which consumers will have to pay tax on each item will fall from £135 to £60 from 1 January 2023.

This will go some way to satisfy local retailers, who have long highlighted the disparity between internet and high street sales when it comes to GST. 

The Treasury is also exploring changing the rules around personal income tax residency and business interest rules. 

READ MORE...

Express brings you everything you need to know about the Government Plan...

SPENDING: From covid recovery to castles... Government lays out project plans for 2022-2025

TAXES: Drinking, driving, smoking and online shopping to get pricier

BORROWING: The Big Borrow - going £1.8bn into debt and paying it off

SAVINGS/CUTS: Around 50 voluntary redundancies part of £4.1m Gov staff savings plan

Sign up to newsletter

 

Comments

Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

Once your comment has been submitted, it won’t appear immediately. There is no need to submit it more than once. Comments are published at the discretion of Bailiwick Publishing, and will include your username.

Posted by Scott Mills on
For shoppers, this means a 750cl bottle of wine will be 8p more expensive, and the price of a litre of a spirit will rise by 85p. I hope that will be the case, because I'll be watching and we all know how creative our supermarket "franchises" are over here. gov say x% then we see a rise in 10% on top of that. It'll be too expensive to live on your own island soon for everything!!! Run for the beaches
Posted by Jon Jon on
Everything going up ,has the old age pension been increased this year? They have been quiet on that one.
Posted by Private Individual on
No mention of balancing the books or stopping immigration to stop spending in our civil service.
Posted by Keith Marsh on
The EASY taxation targets, is the proof of a worn out and tired Government, with no new ideas. To be honest I had expected something better.
Roll on the election and let heads roll.
Posted by PatrickGormley9 on
Still no sign of taxing the super rich who live in £30&40 million houses.....
Posted by IanSmith97 on
Pension goes up every October
Posted by Gillian Gracia on
This is an Island that is focussed on wealth and the super rich. No thought for those who struggle weekly the feed and clothe themselves, and these are the pensioners who worked hard and paid into the system for many many years and are rewarded with what?????? Very, very little. Those who are attempting to live on a less than living wage to keep this 'place' going, struggling with extortionate rents and food costs. Be ASHAMED of yourselves States of Jersey. Try and live in their shoes. Very little respect for most of you who really do not care a jot.
Posted by Paul Troalic on
Why don't they just get rid of Zero Ten? It's staring them in the face yet they don't want to see it as the solution to all our problems.
Similarly removing the cap on social security contributions would bring in another chink of menry.
Can someone please tell us why these changes cannot be implemented immediately? We have the answer in our hands. Just do it for goodness sakes instead of causing more pain to the lower paid and the pensioners.
To place a comment please login

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?