Jersey

Jersey tax benefits 'could be removed'

Flyer for removing GST from food, light and heat
Image caption States members were continuing the debate on whether to remove GST from food and fuel

Measures to protect low-income islanders from extra tax costs could be removed if Jersey's goods and services tax (GST) is taken off food and heating, the Treasury Minister warned.

Senator Philip Ozouf made the warnings as part of Tuesday's States' debate.

Senator Alan Breckon is attempting to make basic essentials such as food, heating and electricity - tax free.

GST is set to rise from the current 3% to 5% in June. The debate was continuing on Wednesday.

Senator Ozouf, who is against exempting food and fuel, said if Senator Breckon's motion was passed, the extra benefits put in place to shield low-income islanders from the tax could be under threat.

He said: "The total amount of financial benefit to those low and middle-income families is in the region of £12m and that is of course over and above the existing benefits system that we have... but I recognise these are very difficult issues."

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