Guernsey retailer welcomes shop tax review

Image caption,
Guernsey has no sales or goods tax

A States investigation into the pricing of goods could help ensure value for money for consumers, according to one of Guernsey's largest retailers.

A number of shops do not remove Value Added Tax (VAT) from their products, despite it not applying in the island.

Some argue it covers the increased costs of operating in and shipping to the island.

Peter Creasey, from Creasey's Ltd, said with VAT going up to 20% in January prices needed to be justifiable.

He said: "It does come down to economy of scale and there are opportunities in the UK for retailers to buy absolutely in bulk and to be selling at very competitive prices.

"For those of us trading at the fringes and in the smaller communities we just have to try to make sure our prices are as keen as we can make them.

"It's not just about price it's about the service and the shopping experience."

A similar investigation in Jersey, which has its own 3% goods and sales tax, led to calls for the introduction of a consumer protection law.

However, Guernsey's Commerce and Employment Department, which would be responsible for any review, said it was not the government's place to tell shops what to charge.

VAT in the UK will increase from 17.5% to 20% on 4 January.

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