Author Topic: Failure to exempt all essential goods from GST so far  (Read 2964 times)

Jason the Maverick

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Failure to exempt all essential goods from GST so far
« on: September 10, 2008, 01:01:12 PM »
http://news.bbc.co.uk/1/hi/world/europe/jersey/7607884.stm
 
Politicians are debating which foods are essential and could be tax exempt
A move to get all food, fuel, water, books, magazines and newspapers exempted from the Goods and Services Tax (GST) has failed in the States.

Senator Len Norman lost his amendment by 17 votes to 28.

An amendment put forward by Deputy Carolyn Labey for essential food and domestic fuel to be zero rated has got partial support from ministers.

But there is a continuing debate about what sort of food rates as "essential" and should be exempted.

  At the lower end of the scale the likely benefit for food would only be £1 a week

Deputy John le Fondre

Ministers are considering withdrawing the tax, introduced earlier this year, from essential food items, to help islanders struggling with high food prices.

However, opinion is divided on whether this would have a beneficial effect on weekly shopping bills.

Deputy John le Fondre, who wants to keep the tax, said the rich would benefit more than those on low incomes.

He said GST should be used to raise benefits for those who needed it instead.

Mr le Fondre said: "At the lower end of the scale the likely benefit for food would only be £1 a week, £1.62 for fuel.

"At the top end the benefit, calculated by the department, skips to about £4 - £4.50 a week."

GST was introduced because the government receives less tax from the finance industry after introducing a zero-rate corporation tax to keep it competitive.
 

Offline Fritz

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Re: Failure to exempt all essential goods from GST so far
« Reply #1 on: September 10, 2008, 06:31:23 PM »
Just shop at Iceland, and let the other Supermarket owners put pressure on their,"Buddies",to get rid of GST.

Jason the Maverick

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Re: Failure to exempt all essential goods from GST so far
« Reply #2 on: September 10, 2008, 08:46:28 PM »
They said on the news tonight that they spent ages trying to work out Deputy Pitbull's school uniform amendment......I.e. what is a school uniform?

Offline Conductor

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Re: Failure to exempt all essential goods from GST so far
« Reply #3 on: September 10, 2008, 11:01:03 PM »
If they take GST off food then they don't have to give poor people any more money to survive and at the same time they can raise the rate to 5%, 6%, 7%.......

If they take it off food they cannot lose can they?

Offline danrok

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Re: Failure to exempt all essential goods from GST so far
« Reply #4 on: September 10, 2008, 11:13:53 PM »
It's not just the GST which is the problem, but the inflationary effect it has.  It drives up business overheads, which drives up prices.  We end up paying for that no matter what.

They have made a right dogs dinner of this, in my opinion.  More thought should have been put in to exemptions before GST was introduced, there was no reason to rush in to this.

Small economies, such as ours, should have a minimal set of taxes.  Keep things simple, to keep costs down.

Jason the Maverick

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Re: Failure to exempt all essential goods from GST so far
« Reply #5 on: September 10, 2008, 11:17:23 PM »
It is the overheads for business which has been completely missed in this.  I know of shops that have closed because of GST and the Internet finished them off.