November Vote On GST-Free Food

Wednesday, 12 October 2022 08:11

A Jersey deputy calling for GST to be removed from food says she's 'more convinced than ever it's the right thing to do and the right time to do it'.

Reform Jersey's Raluca Kovacs says the 5% tax needs to be taken off everyday foods to help the many people who are struggling to make ends meet.

She has formal submitted her proposal for debate after announcing last month that she was working on the request.

In a change to her initial suggestion of achieving GST-free food by May 2023, she is now asking that the legislation to exempt food take effect 'at the earliest opportunity, but no later than 1 January 2024.

It would exempt food, excluding alcoholic drinks, based on the UK's zero-rating categories for VAT.

The deputy is attempting to fulfil one of the party's election manifesto promises.

"While I have been working on the background details contained in my Report I have met with many people from across our community and I am more convinced than ever that this is the right thing to do and the right time to do it.

Virtually without exception people have told me about some unprecedented increases in their everyday food costs, which are having a very real effect on their life choices for themselves and their families."

Deputy Kovacs

3% GST was introduced in May 2008. It was increased to 5% in May 2011.

Since then, there have been several attempts to remove GST from food. All of them have been defeated.

"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."

If it's approved, it would cost an estimated £10 million a year in lost revenue for the government.