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Food Fails To Secure GST Exemption In Jersey

by Ulrika Lomas, for LawAndTax-News.com, Brussels

12 September 2008

A three day debate on the new Goods and Services Tax in Jersey ended on Friday with the news that food will not be exempted from the tax after all.

The tax was introduced earlier this year to compensate for the revenue loss resulting from changes to the corporation tax regime.

At the end of last month, Jersey's Council of Ministers - headed by Carolyn Labey, Assistant Minister in the Education, Sport and Culture Department - announced plans to introduce a package of tax measures designed to dampen the impact on Jersey residents of recent increases in food and fuel costs, which would exempt vegetables and milk from being subjected to GST in a bid to ease the burden of rising prices for Islanders.

However, a tied 25-25 vote on Friday determined that the tax on food will stay the same, for now, at least.

Earlier in the week, proposals to exempt books, food, fuel, magazines and newspapers and water from GST were also rejected.

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