As Guernsey nears another debate, on a new set of GST proposals, Jersey’s government is again being urged to take the consumption tax off food.
The Chief Executive of the Channel Islands Coop has told the Jersey Evening Post that it is “ready to work” with Jersey’s States on the matter.
The pan-island retailer says the goods and services tax should not be charged on essential food, with Mark Cox saying the time has come for Jersey to look at how it can “ease the burden on households”.
Jersey is due to go to the polls next weekend to elect a new States, with Mr Cox saying the refresh is the “right moment” to make a change.
Jersey first introduced its goods and services tax in 2008, to coincide with the introduction of the Zero-Ten tax policy that wiped millions off the island’s revenue.
Originally, Jersey’s GST was set at 3%, including on food. It was put up to 5% in 2011.
Guernsey also introduced Zero-Ten in 2008 but has not yet adopted GST.
It has been repeatedly explored as an option to plug the gap in island finances since the standard rate of corporate income tax was set at 0%, with some financial services and utilities taxed at 10%.
The current proposals for tax reform in Guernsey are around a GST+ package that include changing income tax and social security systems and allowances, while bringing in a consumption tax at 5%, including on food.
The States are then due to debate that proposal in July – with a view to GST+ being adopted from 2028, if it is approved.
