Poll Reveals GST Absorbed By 73% Of UK Retailers In Jersey

by Carla Johnson, Investors Offshore.com, London

15 May 2008

Jersey's Economic Development Minister, Philip Ozouf, has run an initial survey of 26 UK retailers in Jersey to find out how they have handled the implementation of the recent Goods and Services Tax (GST), it emerged this week.

The results of the survey show that, of those questioned, 73% had absorbed the GST, 23% had passed the cost on, and 4% had taken a mixed approach, absorbing the levy on some lines and passing it on in others.

Senator Ozouf commented:

“It strikes me that the most interesting finding from this research is that the vast majority of companies who previously charged VAT inclusive prices have absorbed the GST."

"The companies which have charged GST were in the main already deducting the equivalent of UK VAT off their prices. Many islanders have expressed concern to me that Jersey consumers should not charge UK VAT inclusive prices (in the main UK chains), so this is a welcome step in the right direction."

He concluded: "This was an initial survey of 26 retailers but it does support the informal research that has been carried out by a number of groups. I would encourage consumers to vote with their feet and applaud the various media campaigns aimed at making our high street VAT-free."

"Other retailers surveyed have passed the cost on to the consumer but the number of retailers in this category is very low. It is also encouraging that some retailers are absorbing the cost of GST for national newspapers too."

The initial survey was conducted on Thursday 8th May and Saturday 10th May 2008. The States authorities have pledged to continue to monitor retail prices following the introduction of GST.

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