Jersey's Goods and Services Tax set to rise to 5%

Senator Philip Ozouf Senator Philip Ozouf said the budget is a "pivotal" one for the island

Related Stories

Plans to raise Jersey's Goods and Services Tax (GST) from 3% to 5% have been unveiled as part of the 2011 budget announcement.

The island's treasury minister, Senator Philip Ozouf, is proposing the increase from 1 June 2011.

Islanders are charged GST on most items such as newspapers, food and petrol.

The budget also outlines plans to put up the price of a litre of spirits by 58p, a packet of 20 cigarettes by 35p, and a litre of unleaded petrol by 2p.

Jersey's Council of Ministers hopes the States can make £65m of savings by 2013 through its Comprehensive Spending Review.

Senator Ozouf said: "This is a significant saving and we are intent on delivering it without serious detriment to the level and performance of front line services.

Duty Proposals

  • Spirits - 58p rise on a litre
  • Wine - 7p rise on a bottle
  • Beer - 2p rise on a pint
  • Cigarettes - 35p rise on a packet of 20
  • Petrol - 2p on a litre of unleaded

"The highest priority for savings is through efficiency in existing practices and reorganisation of functions where this will reduce costs and improve performance."

GST has remained at 3% since it was introduced in Jersey in May 2008.

Announcing the planned increase, Senator Ozouf said: "Although GST is controversial there is little doubt it raises money in an efficient way that does minimal damage to the economy.

"The Council of Ministers and I recognise people are concerned about the impact a rise in GST will have on the less well-off in our island.

"That is why I also propose, in the interest of fairness, to compensate those on income support and maintain an adequate GST bonus for those on low incomes but not receiving income support."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC Jersey