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Politicians throw out plan to scrap food GST

Politicians throw out plan to scrap food GST

Thursday 24 November 2022

Politicians throw out plan to scrap food GST

Thursday 24 November 2022

A push by a Reform Deputy to scrap GST on food has been thrown out by the States Assembly.

The proposition put forward by St. Saviour's Raluca Kovacs was defeated by 17 votes to 28.

Following the vote, she told the Assembly this was not the last they have heard on this topic.

However, the scheme was met with a number of concerns, including from the Council of Ministers – many of which rejected the proposals.

Home Affairs Minister Helen Miles said the proposals didn't give consideration to the "cost to Customs and Immigration".

"I cannot support the proposition, not because I don't care. I can't support it as the benefit it may bring does not justify the disruption to public business," she said.

External Relations Minister Philip Ozouf said the focus should be on providing competition in order to lower the cost of living and described Deputy Kovacs proposition "seriously failed".

St. Helier South Deputy Sam Mézec, who supported the proposition, described GST as a "regressive tax" which has not achieved what it set out to do.

"If we want to help the vulnerable, the government just seems to throw benefits at them rather than get to the root of the cause," he said.

GST was first introduced in 2008 at a rate of 3% before being upped to 5% in 2011, where it has remained ever since.

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Posted by T Hanson on
It would be good for a variety of proposals to be investigated with a view to getting the price of food down, including increasing competition and ensuring there is no market abuse going on. But in the meantime, how can it be just upon lower income groups to impose a tax on the food they just need to survive & keep healthy? If the tax needs to be made up from other sources, look at increasing rates on true 'luxury' products.
Posted by MichaelEvans46 on
Maybe Philip Ozouf should look at bringing in Aldi, Lidl or B+M Bargains then some of the extortionate prices of other supermarkets will come down because nobody will use them
Posted by David Kingham on
What a surprise, a system that was seriously flawed at the time of introduction where essential goods should have been exempted, unfortunately the politicians at the time (and there is no reason to believe things have improved), said it would complicate matters so lets charge, the then 3% on everything,
What a mediocre excuse to say that zero rating Foodstuffs would cause a problem for Customs, I'm sure that had much more difficult tasks to deal with back in the day.
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