Jersey

Another plan to take tax off food and fuel in Jersey

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Image caption Senator Breckon wants sales tax removed from food and domestic fuel

There will be another attempt to remove the goods and services tax (GST) from food and fuel in Jersey.

In December 2010 a similar proposal was narrowly defeated in the States 26 votes to 24 after a day of debate.

Senator Alan Breckon is bringing a proposition to the States and will hold five public meetings before the debate.

The sales tax is set to rise from the current 3%, set when it was first introduced in 2008, to 5% from the start of June.

Senator Breckon said: "Part of the argument for it to be on everything was that if it was widespread it would stay low for a long time.

"This is the first opportunity to increase it and it has been taken.

"As night follows day it will happen again and that is why I'm getting energised about it again."

Treasury Minister, Senator Philip Ozouf has said that the move would cost the island £8m a year.

He said if Jersey adopted the same VAT measures that are used the UK, it would be complicated and would cost £200,000 to £300,000 a year to administer.

The proposition is due to be debated in May.

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