Cuts to Jersey's 'unfair' GST food tax 'not the answer'

Food items are subject to a 5% goods and service tax in Jersey

Cutting the goods and services tax (GST) on food is not the answer to address the rising cost of living, Jersey's treasury minister has said.

Deputy Susie Pinel told the BBC that lowering the tax on food would not solve problems of inequality.

It comes as a supermarket boss called on the island's leaders to reconsider the "unfair" food tax.

Mark Cox, who runs the Channel Islands Co-op, said it was "morally wrong" to add the GST to basic food items.

"Against the back drop of rising food prices, we think it is morally wrong that GST is applied to basic food stuffs," he explained.

"If there is an opportunity for government to recover tax from imports, then we should be looking at what we are doing with tax on basic food pricing."

Deputy Pinel said the government already helped people struggling with their bills and that there were not any plans to reduce the 5% levy.

She said: "The lower income families are compensated in other ways, with allowances, tax allowances, tax relief and the community cost bonus; which compensates for the GST."

She also said that the administrative costs of removing the GST from food "would be enormous".

The price of living in Jersey has risen dramatically across all sectors recently.

Ministers have also warned that inflation "may rise further in 2022".

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