Scrapping GST on Food Would Cost Jersey £14.4m Annually, Treasury Minister Says

Removing GST from food in Jersey would cost the Government an estimated £14.4 million a year, Treasury Minister Senator Alan McLean has said.

Responding to a written question from Deputy Lee Carpenter, McLean said exempting essential grocery items from goods and services tax (GST) would disproportionately benefit higher-income households because they generally spend more on food.

Government analysis found that households with the lowest incomes would receive average annual savings of around 12%, while the highest-income households would benefit by approximately 28%.

McLean said that when GST was introduced, the States agreed to offset its impact through higher personal tax allowances, increased income support payments and targeted assistance via the Community Costs Bonus.

He said ministers continued to believe that a broad-based GST, combined with those support measures, remained the most effective way to help islanders with the cost of living.

The comments come as the future of GST continues to generate debate across the Channel Islands. In neighbouring Guernsey, campaigners have staged protests against proposals to introduce a 3% GST from 2028, with demonstrators warning they do not want the island to follow Jersey's example. Guernsey's States is due to debate the proposal this week.