Government Dismisses Demands to Cut Tax on Food

The Jersey government has dismissed renewed calls to remove the Goods and Services Tax (GST) from food, despite growing concern over rising grocery bills.

Treasury and Resources Minister Deputy Elaine Miller said cutting GST would create a hole in public finances that would have to be filled elsewhere. Her comments were made in response to a petition, signed by more than 1,500 islanders, urging the government to scrap the 5% levy on food to ease the cost-of-living squeeze.

The petition argued that ending GST on essential items would provide much-needed relief for households struggling with everyday expenses.

But Miller insisted the fairest way to support lower-income families was through targeted measures such as income support and higher personal tax allowances, rather than altering GST.

“Jersey’s comparatively low GST, combined with generous income tax allowances and benefits, ensures islanders keep more of their money and decide how to spend it,” she said.

Miller warned that removing GST from food would force the government to raise the tax elsewhere. “Treasury analysis shows the rate on other goods and services would need to rise by around one percentage point, to 6%, to make up the shortfall,” she explained.

Food prices in Jersey climbed 4.1% in the year to June 2025, according to Statistics Jersey, adding pressure to household budgets.