Jersey tax cut move on sanitary products could be axed

The treasury minister has proposed rescinding the decision to remove GST from sanitary products, which has not yet come into force

The chief minister, who successfully lodged a proposition to remove tax from sanitary products, is backing proposals to rescind the decision.

In April 2022, the States approved removing the 5% Goods and Services Tax (GST) on sanitary products. but it has not come into force yet.

Treasury and Resources Minister, Deputy Ian Gorst, lodged the new proposition on Wednesday to reverse the move.

Deputy Kristina Moore is backing the treasury minister's proposal.

If the proposition, which is also backed by Deputy Elaine Millar and Deputy Karen Wilson is approved, Jersey will remain the only place in the British Isles to tax sanitary products.

In his proposition, Mr Gorst said now the States had provided free sanitary products at locations such as libraries and community centres, it was considered "unnecessary to also exempt" GST from the commercial supply of products.

Islanders for the first time have also begun paying GST on all online purchases since July, in what the States said was an "issue of fairness" for high street retailers.

Mr Gorst said "the intention and purpose" of the proposed removal of GST on sanitary products had been "met and surpassed by the government", and that the proposed removal had created "administrative burdens and costs" for itself and retailers.

He said: "Having made provision for access to free supply, and thus dealt with the immediate issue of affordability, any persuasive argument for a tax exemption falls away in favour of maintaining Jersey's long-standing tax-policy principles.

"Recognising the challenges and uncertainties of GST zero-rating, the Council of Ministers consider that providing free products is a better and more impactful way of guaranteeing access to free period products for those who need them, and therefore having the best immediate and long-term impact that will benefit islanders."

The States will be able to debate the proposal at the earliest date of Tuesday 12 September.

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