Jersey

Plan to stop firms charging VAT in Jersey

Jersey's economic development minister has been asked to investigate pricing on consumer goods after items were found on sale at a VAT-inclusive price.

Deputy Mike Higgins has lodged a proposition calling for prices for foreign and locally-owned businesses to be monitored by Trading Standards.

Jersey has a 3% goods and sales tax and does not charge VAT.

Deputy Higgins said many shoppers feel "ripped-off by shops" in Jersey charging UK prices.

'So-called freight costs'

Some UK shops that charge VAT-equivalent prices argue it covers their shipping costs.

In his proposition, Deputy Higgins, said: "Many people in Jersey are struggling to make ends meet.

"A situation that is due to many factors, not least the practices of various wholesale and retail outlets who are charging prices for goods comparable to those found in other countries, such as the United Kingdom, which include sales and value added taxes which as the goods are sold in Jersey they do not pay.

"Or are sold at prices that are inflated to so-called freight costs which are in excess of any freight charges they have actually incurred."

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