Sunday 26 March 2023
Select a region

Removing food GST "would leave a hole in balanced budgets"

Removing food GST

Thursday 13 October 2022

Removing food GST "would leave a hole in balanced budgets"

Thursday 13 October 2022

Removing GST from food would "leave a hole" in "balanced budgets", the Treasury Minister has said in response to a Reform Deputy's bid to scrap the controversial tax.

Deputy Ian Gorst said that, in any case, he didn't think that Deputy Raluca Kovacs' plan could be delivered quickly enough to help islanders through the current cost of living crisis.

Deputy Kovacs will be presenting her proposition to the States Assembly next month, asking States Members to vote in favour of making the Treasury Minister bring forward proposals to have GST removed from food products by 2024.

Explaining her rationale behind her bid earlier this week, the St. Saviour Deputy said: "I know that the States of Jersey have discussed and debated removing GST on certain items before, with some very close voting, however, I believe the current economic and inflationary climate requires the removal of 5% now to assist many people in our community who are struggling to make ends meet."


Pictured: Reform Jersey's Deputy Raluca Kovacs, who will be getting States Members to vote on her plan next month.

Deputy Gorst responded this afternoon: "We are aware of the proposal lodged by Deputy Kovacs. The Council of Ministers will consider it carefully and fully ahead of the scheduled debate. Through the Mini-Budget, Ministers delivered, with the Assembly's support, a comprehensive package of measures that will help Islanders immediately with the cost of living crisis and be funded from improved income forecasts.

"Those forecasts have enabled crucial investment in services to be made, particularly in health, children's services and education."

He continued: "We have already said that, in the event that the cost of living continues to rise, Ministers will not hesitate to take measures to help islanders again, with further measures to put money in their hands, when they need it. There will be many arguments made for and against the proposal, but what is undeniable is that it cannot be delivered quickly enough to help Islanders with the challenges they may face today.

"Affordable and sustainable spending plans and helping Islanders with the cost of living are based upon current and improved forecasts of income, including GST receipts. These balanced budgets have been presented in the Government Plan. This proposal would leave a hole in those balanced budgets. It is disappointing that it has not been set in the context of those plans and how we propose to return the finances back to balance."

Follow Express for updates...

Sign up to newsletter



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 on
It is the only fair tax as everyone must pay it.
Posted by Scott Mills on
We've got massive holes in our pockets!!! government worse than tories. Atleast there's no VAT on food or kids clothing in the UK. Only in Jersey, we not asking it forever just until mess goes full circle. It's not like Jersey is a poor island is not?
Posted by Lesley Ricketts on
Holes in balanced budgets are far better than homes in childrens stomachs when their parents can’t afford to feed them properly. I’m sure the money can be magicked up. It usually is when politicians need it for some scheme or other. Look at the amount that has been wasted on the hospital project for instance.
Posted by Keith Marsh on
As I mentioned yesterday, lovely idea to remove GST from food, but where does the lost revenue come from.
Increased GST on everything else ??
Posted by Richard Lock on
Dear Minister, what actually leaves holes in balanced budgets is 1) chucking £100m away on consultants fees for the new hospital 2) giving sites away gratis to the States of Jersey Development Company 3) Outsourcing every decision to UK consultants who have no clue about the workings of the island 4) Handing excessive payoffs to civil servants who haven’t fulfilled their remit and instead left a trail of disaster.
Posted by Jon Jon on
Not going help much, rich will get richer, but those on low incomes claim income support, plus now many more people can claim community bonus payment.
Posted by Peter Rioda on
Maybe GST should be removed from locally grown food that is sold on island. We need better incentives for local growers.
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?