According to a report by the BBC, Jersey’s Minister for Treasury and Resources said that cutting the goods and services tax (GST) on food would not solve problems of inequality.
It comes as boss of the Channel Islands Co-op, Mark Cox, called on Jersey’s representatives to reconsider the food tax.
He said: “Against the backdrop of rising food prices, we think it is morally wrong that GST is applied to basic food stuffs.
“If there is an opportunity for government to recover tax from imports, then we should be looking at what we are doing with tax on basic food pricing.”
No plans to reduce the levy
Deputy Susie Pinel said that the Jersey government has no plans to reduce the 5% levy on most item such as food, newspapers and petrol. She added that government was already helping those unable to pay their bills.
She said: “The lower income families are compensated in other ways, with allowances, tax allowances, tax relief and the community cost bonus, which compensates for the GST.”
According to Pinel, the administrative costs of removing the GST from food “would be enormous”.
