Guernsey shops not to be told to stop adding 'VAT' rate

Proposals to tell shops in Guernsey not to sell goods at prices that include an extra charge at the UK's VAT rate have been ruled out by a minister.

Some stores in the island have prices which include an extra 17.5%, which they say helps with business costs.

The Commerce and Employment Department was asked to look into the situation in the States.

Department minister Carla McNulty Bauer said it was not right for government to interfere in what shops charged.

The Channel Islands are not part of the European Union, so VAT regulations do not apply to Guernsey and no VAT has to be charged on goods.

VAT rates in the UK are due to increase to 20% in January.