The government of Jersey has declined a petition to eliminate the Goods and Services Tax (GST) on food. Treasury and Resources Minister Deputy Elaine Miller indicated that abolishing the tax would necessitate increases in other costs. The petition, which garnered 1,500 signatures, argued that removing the 5% GST on food would alleviate financial pressures on island residents.
Miller stated that the government believes the most effective means of assisting lower-income households in managing living expenses is through direct support methods such as income support and personal tax allowances. She emphasized that Jersey’s low GST rate for all goods and services, coupled with substantial personal income tax allowances and income-related benefits, allows residents more control over their spending.
According to Miller, if the GST rate on food were to be reduced, there would need to be an increase in the tax on non-food items and services by approximately one percentage point to maintain fiscal balance and public services. Preliminary analysis by the Treasury suggests that raising the GST on non-food goods and services to 6% would offset the revenue lost from removing the GST on food.
In a separate report, Statistics Jersey noted that food prices on the island had increased by 4.1% over the year leading to June 2025. This data may raise further questions regarding the cost of living and the potential impact of taxation changes on residents.
Source: https://www.bbc.com/news/articles/cn82g8v54m7o?at_medium=RSS&at_campaign=rss