Author Topic: GST Cushion or just a pre-election sweetener?  (Read 2298 times)

Jason the Maverick

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GST Cushion or just a pre-election sweetener?
« on: September 24, 2008, 06:07:13 PM »

PLANS to offset the impact of GST on low- and middle-income earners through increased benefits or reduced tax bills were approved by the States yesterday.

Members voted by 36-4 to back a proposal from Assistant Treasury Minister John Le Fondré to raise tax thresholds and increase levels of income support to ease the burden of the new 3% goods and services tax.

The Deputy came up with the scheme as an alternative following the rejection earlier this month of a proposal from Grouville Deputy Carolyn Labey to exempt food from the 3% sales tax. The move will cost about £4.3 million and will also include an amount for rising fuel prices.

In presenting his proposals, the St Lawrence Deputy said that proportionately the changes would be of most benefit to the less well-off and the vulnerable in Jersey. It will now fall to Treasury Minister Terry Le Sueur and Social Security Minister Paul Routier to make it happen. Senator Le Sueur said he would work to include the new tax thresholds and benefit levels in his December budget to help people this winter.