Removing tax from food could cost £14m - minister
Treasury says a GST removal from essential grocery items would mostly benefit the richest islanders.
Minister: Removing tax from food could lead to £14m loss
The Treasury has indicated that eliminating the goods and services tax (GST) on food would primarily benefit the wealthiest residents of the island. According to treasury minister Alan McLean, it would cost the states £14.4 million annually to abolish GST on essential grocery items. In response to a written inquiry from deputy Lee Carpenter, McLean noted that the wealthiest islanders would gain the most from this change due to their higher spending levels. The analysis revealed that households with the lowest incomes would see a 12% annual savings, while those with the highest incomes would save 28%. McLean pointed out that when GST was first implemented, the states committed to offsetting the impact on residents by enhancing personal tax allowances, increasing income support payments, and providing targeted assistance through the community costs bonus. "Ministers believe that a broad-based GST, along with these support measures, is the most effective method to assist individuals with the cost of GST on food," he stated. On Monday, residents of Guernsey demonstrated against a proposed 3% GST, which is set to be discussed this week and, if approved, could be implemented by 2028.
For more news from Jersey, listen to the latest updates and follow BBC Jersey on X and Facebook. You can also share your story ideas at [email protected].
Protests ahead of Guernsey States GST discussion
GST scheme reports £4.6 million in spending since 2025
Retail price index increased by 2.8% in 2025
Government of Jersey