JERSEY GST ON FOOD WOULD COST £14.4M YEARLY, TREASURY SAYS

Removing goods and services tax (GST) from food would cost the Jersey treasury £14.4 million annually, according to treasury minister Alan McLean. In response to a written question from deputy Lee Carpenter, McLean stated that eliminating GST from essential grocery items would predominantly benefit higher-income households. An assessment found that households with the lowest incomes would save 12 per cent yearly, whilst the highest-income households would save 28 per cent annually.

McLean outlined that when GST was introduced, the states agreed to compensate islanders through improved personal tax allowances, increased income support payments and targeted support via the community costs bonus. The government maintains that a broad-based GST, paired with these support measures, represents the most effective approach to help residents manage the cost of GST on food. The minister's comments follow a proposal for a 3 per cent GST increase in Guernsey, which prompted public protest on Monday and is scheduled for debate this week in that jurisdiction.

The treasury's position reflects the government's view that removing GST from food would not achieve targeted support for lower-income households. Should the proposal be approved in Guernsey, implementation is planned from 2028. Jersey's own GST scheme recorded £4.6 million in spending since 2025, according to earlier government figures.