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Ministers ask for permission to scrap plan to remove 'tampon tax'

Ministers ask for permission to scrap plan to remove 'tampon tax'

Thursday 03 August 2023

Ministers ask for permission to scrap plan to remove 'tampon tax'

Thursday 03 August 2023


Ministers are asking politicians to allow them to scrap a previous commitment to remove GST from period products because they feel they have "surpassed" this aim by providing free products in some locations around the island instead.

In May 2022, politicians voted to instruct the next Treasury Minister to remove the 5% GST on period products.

The proposal was put forward for debate by then-Senator Kristina Moore, who pointed out that Jersey was the only place left in the British Isles not to get rid of what has become known as the ‘tampon tax’.

In a report setting out her argument, she argued that having GST on period items meant that they were viewed as a "luxury item".

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Pictured: Last year, Kristina Moore said that having GST on period products painted them as a "luxury item".

“Periods are not opt-in!" she said at the time. "They are not something that is a choice – and they are not a luxury. At present there are charities that provide menstrual projects in schools – however women should not have to turn to charity to deal with period poverty.”

Despite securing the support of the States Assembly for the GST exemption, Deputy Moore instead decided to address the problem by placing free period products in different locations around the island as part of a '100-day plan' commitment. 

This attracted criticism from Chief Scrutineer Sam Mézec, who challenged the now-Chief Minister on the apparent lack of progress on the GST removal

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Pictured: Chief Scrutineer Sam Mézec said that the introduction of the free period product scheme "does not supersede the decision of the Assembly to have GST removed from these products".

Deputy Moore argued the free products scheme – introduced in October 2022 – meant that the "the intention of my proposition has therefore been achieved and exceeded".

As a result of this, a proposition has now been lodged asking the States Assembly to "agree to rescind their decision to exempt Goods and Services Tax from menstrual sanitary products and continue the implementation of a scheme by the Council of Ministers to provide free products to those who need them".

Lodged yesterday by Treasury Minister Ian Gorst, the rescindment explains that the Council of Ministers "consider it unnecessary" to make period products exempt from GST "given that period products are now available for free".

"The intention and purpose of P.66/2022 [the decision to make period products exempt from GST] has been met and surpassed by the Government," he adds.

The proposition has also been signed by the Chief Minister, the Health Minister, and the Social Security Minister.

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Pictured: Free tampons and sanitary towels are made available around the island at public locations such as the library and sports centres.

In his proposition, Deputy Gorst also explains that "exempting goods from GST creates administrative burdens and costs both for retailers and Government".

He claims that the free period scheme has "dealt with the immediate issue of affordability", and therefore "any persuasive argument for a tax exemption falls away in favour of maintaining Jersey’s long-standing tax-policy principles".

Deputy Gorst also says "it is unclear whether cost savings would materialise to any noticeable extent for islanders and visitors who still choose to buy [period products]" as tax savings may not be passed down to customers."

He concludes: "Recognising the challenges and uncertainties of GST zero-rating, the Council of Ministers consider that providing free products is a better and more impactful way of guaranteeing access to free period products for those who need them, and therefore having the best immediate and long-term impact that will benefit islanders.

"Accordingly, Members are asked to rescind the decision of the previous Assembly in favour of endorsing the scheme to provide free products to anyone who needs them."

READ MORE...

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Free period products to be made available around the island

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