Guernsey's States vote to exempt food from goods and services tax

Food is to be exempted from the proposed goods and services tax (GST)

Attempts to exempt food from a goods and services tax (GST) have been approved by Guernsey's States.

It is likely to mean the proposed 5% rate of GST will need to be increased to 6% to ensure enough money is raised.

Deputy John Gollop, who led the proposal, told the States the introduction of a GST would be "less painful" if food was exempted.

Policy and Resources plans to introduce a GST and income tax changes amid a projected budget deficit.

Deputies voted by 22-4 to approve the plan, with 13 deputies abstaining.

The proposal from Mr Gollop also exempts clothes and books sold by locally registered charities.

Deputy Victoria Oliver said: "Implementing GST on food will lead to further problems within healthcare.

"I think it is a step in the right direction."

Policy and Resources member Deputy Jonathan Le Tocq said he could not support the exemption.

Policy and Resources Treasury Lead Deputy Mark Helyar abstained on the vote, as "there may be members more inclined to vote for Option A if food is exempted".

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