GST ON FOOD TO BE SCRAPPED

[the 13th parish]

GST on food is set to be scrapped.

Jersey's ministers have announced they will support a move to make essential food items exempt from the three percent tax.

They say they vote in favour of a motion put forward by Deputy Carolyn Labey.

It's due to be debated on 8th September.

The decision has come out of emergency talks to find ways of helping islanders cope with the rocketing costs of food and fuel.

The Council of Ministers is not supporting a GST exemption on fuel though.

But they will freeze fuel duty and increase winter fuel payments by 20%.

The full package of measures announced today:

*zero rating on GST on food
*increasing winter fuel payments by 20%
*maintaining the current rates of income support, including the allowance for GST on food, and the scheme for people who do not receive income support but are below the tax threshold. This means that the full benefit of GST food reductions will be passed on to people on lower incomes who have already received support to cover those costs.
*deferring from January 2009 until October 2009 any reductions in income support for people who receive transitional relief.
*introducing a programme of home insulation grants and energy efficiency advice to help the public to reduce their fuel bills.
*accelerating the programme for insulation of States Housing and help States tenants reduce their fuel costs.
http://www.channel103.com/news/index.php

[Terminator 4]

Sounds like an election winner to me  .  and just before elections as well.  Do we get a GST refund on the money paid from 6th May on bread and milk then

[ryanmorrison]

The zero ratings of GST on food won't apply until Spring 2009 - assuming it is approved by the States.

http://www.bbc.co.uk/jersey/content/articles/2008/08/22/gst_foodzero_feature.shtml

[Terminator 4]

We need it now

[en830]

I'm surprised anyone actually believes that the supermarkets will actually reduce their prices accordingly.

[moot]

Thousands of islanders told them so and now, close to the elections, the penny finally drops. Old Terry & Co simply live in a different world than the rest of us. Supermarkets / shops will not reduce prices by 3% as they want to recover cost of relabelling/ software updating etc. What about those who were absorbing GST. Will they drop their prices ?
This whole GST saga has been a disaster form start to now and it hasn't finished yet !
We are now sailing on a rudderless ship with headless chickens at the helm and very rough seas all around us
The Council of hapless Ministers is losing the plot and, drunk with greed and self importance, they don't know where to stagger next....
And Terrible Terry still wants to be our Chief Minister. God Help us all...
 

[Voltaire]

Bollo*ks, pardon my french.

This has been desigbed to come in many months ago as all those that voted for GST where so gullible to do so that they didn't think of the consequences of their actions and their future employment.

GST will be removed from a minimum of food, though it should also be removed from electricity, gas heating oil etc, but essentially will be approved to try to help some get elected. They could have done this months ago, but it needs to be closer to the elections to have any effect.

Because they all think we are daft...

[Conductor]

GST is still on food and until March 2009.  What will they say at the Hustings?  Oh, its coming off soon, next question please.

So don't think its gone because its still here for sometime yet the bastards and come March 2009 Chief Minister Le Sewer will wanna whack up GST to replenish States spending and final salary deficit  hole filling on everything else.

[moot]

The time before and during Christmas many of us will spend much more than usual on quality food and this year we will still pay GST. This will hit hard and the rise of food prices in general hasn't tailed of yet. I am sure inflation here will hit 6% soon ( Ole Frankie's spin doctors will make it 5.9 ) and this is really bad news for the Jersey
We need GST off food BEFORE CHRISTMAS but not before the elections as we can use this against the 28 States members who voted for GST
G = Get  S = Stuffed T = Terry !

[Conductor]

Don't buy it, it means nothing now cause by the time we get to March 2009, 3% being taken off food that carries on going up in price will amount to nothing.

[Fritz]

Sod GST on food, It wouldn,t matter if Lidl, Asda or Tesco were allowed in. Just look at the effect Iceland has had on the established supermarkets.

If a proper competitor were allowed in, I wouldn,t care if they added GST, VAT or STD.

They would still be cheaper than what is available now.

[Conductor]

Iceland is crap, what are you going to do? Live off 2 for a fiver party packs for the rest of your life?

Why can't they take it of now anyway?  Now is the time we need it taken away not next year as a vote winning softening up PR stunt.

[Fritz]

"Iceland is crap"?  That would explain why you are far more successful in business than the owners of Iceland then. Eh? LOL.

[sylander]

"Iceland is crap" lol . 

[sylander]

to the previous comment about gst exemptions on food favouring the rich over the poor... hmm... well i suppose its conceivable that rich people do eat more (?). and tend to shop at M & S as opposed to Icland, therefore they may spend more thus be better off. But come on, are we really expecting the states to redistribute the tax paid to the poorer families? Besides the real danger here is inflation isn't it? With food prices already soaring, surely its madness to stick an extra 3% on food. Everybody's talking about rising prices, creating inflationary pressure, higher wage demands etc etc... Its hilarious that the States have commssioned an anti-inflation report and nowhere does it mention the effects of GST. Nowhere!!!!