Debate over Jersey's Goods and Service Tax

Similar proposals have been rejected in the States of Jersey in the past

The Goods and Services Tax (GST) should not be removed from food and fuel in Jersey, the Institute of Directors (IoD) has said.

Senator Alan Breckon proposed that food and domestic energy should be free from GST.

Similar proposals have been rejected in the States of Jersey in the past.

Jason Laity, of the IoD said while the proposal may appear attractive at first, it does not target islanders who really need financial support.

Mr Laity, of the IoD's tax sub-committee, said instead the States should improve the island's benefits system to help people who were most in need.

He said: "The Treasury Minister indicates that this proposal would reduce GST revenue by approximately £8m.

"In effect, by reducing GST for everybody, that £8m is enjoyed by everyone who buys food, no matter what their level of income is," said Mr Laity.