Members of Jersey's States are being asked to choose between exemptions in the proposed goods and services tax (GST) or a higher income tax threshold. Members vote on Tuesday on whether to accept plans to exclude food and children's clothing from the 3% tax.
Treasury and Resources Minister Terry Le Sueur has said he is prepared in return to raise the income tax threshold from three to 6.5%.
He said: "GST exemptions would not help the poor and would complicate matters."
Senator Le Sueur said the move would be difficult for retailers and the tax department.
He added his changes would benefit lower-middle income earners.
But he said he would only take the action if members reject the proposed exemptions.
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