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As Jersey becomes less dependent on direct taxation the States have agreed a major reform of the Island's tax structure. GST, a broad based Goods and Services Tax will be set at 3% and implemented in 2008.

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GST pricing – decision delayed until after tax introduced

When Jersey ’s Goods and Services Tax is introduced next year businesses will have the choice whether or not to display tax inclusive prices on their products.

The Economic Development Minister and the Treasury Minister have agreed to delay a decision until the new tax has been in place for 12 months. Then they will review price marking practice among Island retailers and carry out a survey of shoppers, to identify a policy which will be most appropriate for the future.

Economic Affairs Scrutiny Panel Chairman Deputy Geoff Southern has announced that he and his members will examine the price marking issue and publish a report on whether retailers should be required to display prices which include tax, or whether the tax should be added on at the till.

Scrutiny’s report isn’t expected until October, delaying the States debate on the subject. ED Minister Senator Philip Ozouf believes a decision must be made before then, to allow businesses to prepare for implementing GST next year.

While Jersey ’s Chamber of Commerce has campaigned against displaying prices which include the tax, this contradicts what happens in almost all other places. In the UK , for instance, it is considered so important that consumers’ rights are protected that shops break the law if they don’t display an accurate price on their shelves.

Today EDD Minister Senator Philip Ozouf said: ‘I recognise that GST is a big change for our larger retailers and Scrutiny’s timetable will not allow them time to plan for its introduction. We are working hard to support businesses in understanding what adjustments they will have to make when the tax is introduced, but we cannot ask them to do the impossible. It is a pity that Scrutiny has only just decided to carry out this review, but I respect their right to do this work. The important thing for Jersey is that GST comes in next year and this will still happen.’

Senator Ozouf said his commitment to consumer protection remained unshaken. ‘I believe that shoppers should be able to see the price they will have to pay clearly displayed on the shelves. But it is the job of those in government to listen and this is what I am doing – I have listened to business, I will listen to Scrutiny and next year I will listen again, to see how the shopping experience works in practice, with GST.’

Treasury Minister Senator Terry Le Sueur said: ‘GST is a big, but very necessary, change for the Island . It is an essential part of Jersey ’s fiscal strategy, which lays the foundation for our continued economic success. GST is being introduced to compensate for the loss of tax revenue which will occur in 2010 when Jersey registered companies stop paying tax on their profits. This 0/10 tax option was chosen by the States to safeguard the financial services industry. Already, we are seeing this was a wise decision, with unprecedented growth and confidence in our key industry.’

Senator Ozouf says: ‘I feel passionately about this because shoppers must be told clearly how much they are being asked to pay for their purchases. But we have to be pragmatic and we can’t move too far, too fast. I very much want to work with businesses to get the best solution for the whole community and I will be interested to see Scrutiny’s conclusions. Until we carry out a full survey of all views and opinions next year I will be requiring shops to display appropriate signs indicating to their customers whether GST is marked on the shelves, or added at the till. I very much hope that shoppers will find this adequate protection during the introductory period and help them to understand the real price they will be asked to pay in any retail outlet.’

To protect consumers, Senator Ozouf will ensure that when GST is introduced, retailers who intend to add GST at the till will be required under Article 94 of the GST Law to inform consumers clearly by appropriate signage that their displayed prices do not include GST.

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TREASURY Minister Terry Le Sueur says he will not 'wobble' in the face of three attempts to derail GST, and has confirmed that he will be a candidate for Chief Minister.

In today's Saturday Interview, the 'chancellor' says he will have to consider his political future if any of the moves to delay, halve or add more exemptions to GST is successful.

If the 3% tax survives to start in May as planned, Senator Le Sueur says he will be a candidate for Chief Minister, confirming recent speculation.

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GUERNSEY are just putting off their 'black hole' and have not filled their upcoming deficit, according to Treasury Minister Terry Le Sueur.

And Senator Le Sueur is adamant that it is not fair to compare Jersey's £96m deficit and the expected leftover deficit of £25m in Guernsey. He says that while Jersey's approach to the predicted £96m shortfall in 2009 is to fill it completely, Guernsey's approach involves spending their savings and leaving a £25m deficit from 2010 to 2012.

Criticising a headline on the front page of Friday's JEP as 'misleading', he said: 'Jersey's solution is to maintain our policy of balanced budgets and no structural deficits. It is true that in order to avoid a structural deficit we are introducing GST, but this is a prudent approach, and on our current predictions the rate of 3% can be maintained until 2015 or beyond.

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ISLANDERS will get a final chance to have a say on GST before next week's States debate to stall the tax.

Deputy Alan Breckon has called a public meeting for Thursday night and has revealed that the Jersey Hospitality Association have come out in support of moves to stall the 3% sales tax.

Next Tuesday the States will debate a proposition from St Helier Constable Simon Crowcroft, who has called a separate public meeting for Monday, to stall the tax until an independent review of alternatives has been carried out.

That proposition is supported by the biggest petition in Channel Island history, with more than 19,000 Islanders having backed the last-ditch attempt to delay the tax.

ascottboy

How can we trust Terry Le Sueur on GST or anything for that matter including the sale of Jersey telecom, when he cannot work out the budget, ie. forcasting a £3million deficit for this year when we ended up with a £32 million profit, which he then jst puts in the rainy day fund! The man in my opinion is both stuburn and arogant,wrapped up in his own self importance.If it is not his idea then it's not going to happen, if it is his idea by god it will at any cost!! He does not give a sh*t what islander's think. The man is a disgrace and should step down and out of office now!! (but that is jst my humble opinion) any 1 else got 1??

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Minister's U-turn on GST

AROUND 150 Islanders sent out an angry 'no' to GST last night - and barracked the Health Minister, Ben Shenton, until he promised to reverse his stance and vote to delay the tax.
Although Senator Shenton is trying to exempt food and newspapers from GST, he has previously accepted that there was no viable alternative to the tax.

But last night he agreed to change his stance and will now vote to defer the tax at Tuesday's crucial GST debate in the States.

The Senator's U-turn has dismayed Chief Minister Frank Walker.

'Yesterday at a Council of Ministers meeting he twice confirmed positively that he supported GST. Sadly, I'm not surprised by what happened last night. I thought it was always on the cards.

ascottboy

i feel that the cat is now out of the bag! Mr Walker is pulling the strings!! No suprise there then! Just remind me, who did vote him in to power? Not us the voters!!

AHITS

Im pretty much in agreement with that. Le Sueur's record of money management over the past year or so raises some serious questions about ineptitude. There's the deficit/surplus issue you mention (hardly a minor oversight!), twice this year Le Sueur has done the equivalent of find an unexpected £20 million down the back of the sofa, and he's attempted to force through the sale of public property - to help fill the fabled black hole - at half the price that was on the table.

And as regards that black hole, both he and Walker spent a number of years banging on about it, with Le Sueur issuing his famous "tighten your belts" statement to the public...then a few months ago Walker has the audacity to announce smugly at a back-slapping Finance industry dinner that "rumours of a black hole are unfounded"!

The figures fail to add up, literally and metaphorically. G.S.T. should not be applied until we have a Chancellor who has a record of consistantly good financial management, and has proven his judgement to be sound.

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A Holiday In The Sun....blogged rants and comments about Jersey.

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THE last stand against GST.

Thirty protesters were in the Royal Square as States Members arrived to debate the proposition to delay the 3% tax pending independent reviews of States finances and alternative taxes.

In a fortnight, Members will debate the proposal to exempt food, books, newspapers and magazines put by Health Minister Ben Shenton. If both fail, the States will levy the 3% tax on almost everything from 1 May.

Last night a meeting of around 50 people at the Town Hall unanimously supported the deferral proposition of St Helier Constable Simon Crowcroft, which is backed by a petition signed by 19,000 people.