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27 November 2014

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You are in: Jersey > Inside the States > Other Business > The cost of GST

Shopping

The cost of GST

GST costs the average islander around £626 per year according to the Treasury Minister. What does it cost you?

The average cost of GST to Jersey households is thought to be around £626 per year, or at least that’s the figures given out by the Treasury Minister.

The figure was given to the States by the Treasury Minister, Senator Terry le Sueur, as part of a detailed breakdown of the average cost of the tax.

The figures have been worked out using the retail price index.

It shows that a couple without children, who aren't pensioners, will end up spending around £623. But if that couple has a child the amount will increase to £877 per year.

Meanwhile the average cost for a single pensioner is thought to be about £259 per year.

Senator Terry Le Sueur argues the tax will leave the island in a strong position to deal with the loss of £100 million in tax revenues next year.

The figures were released in response to claims by the Jersey Democratic Alliance that the average cost of GST is over £1000 per year.

They say although a 3% tax may not sound a lot; its effect on household bills is significant.

My GST

I decided to try and work out what GST is costing me per month.

This meant finding out from my wife (!) what our shopping bill is each week and working out how much is actually coming out of my account for utility bills.

It turns out our shopping bill is about £120 per week – that covers food, nappies and other bits and pieces needed to run a family of five and our utility bills come to around £90 per week.

In total this works out at about £210 per week. So to get the amount GST costs us as a family each week we need 3% of £210 – which is £6.30, £27.30 per month or £328 per year.

What about you?

How much is the Goods and Services Tax costing you per year? Does your amount tie in with the £626 average suggested by Treasury and Resources, is it closer to the £1000 suggested by the JDA or is it lower?

Have you had to make cut-backs to your usual shopping patterns because of the inclusion of GST or have you not noticed a difference?

last updated: 07/07/2008 at 15:44
created: 03/07/2008

Have Your Say

The BBC reserves the right to edit comments submitted.

joker
I’ve said it before, I’ll say it again – it is the retailers alone who are responsible for the high cost especially food prices. The comparison in costs between Jersey & the UK cannot be justified by an additional 3% when VAT in the UK is 17.5% for most food stuffs not to mention the much lower duty we have here on wines & beer etc.

Shipping costs are a lie because most of the produce in UK supermarkets has been shipped half way around the world already & the shipping companies here do not make much of a margin.

Inflation is roughly the same as the UK & the minimum wage is cheaper here so retailers can’t justify high salaries as the cause.

Utility costs, rates and company taxation are all cheaper here than UK so you can’t blame the Government/Parish or the JEC etc for increased costs.

It all comes down to greed by shareholders of these companies. If Tesco etc are making massive annual profits by comparison to other industries, how well off do you think our supermarkets are with their high prices?!

Alphonse Le Gasteloi
Lets be honest...a concept not in favour with our politicians. The limited scope of retailers took the introduction of GST as a licence. Not to print money, but fleece the consumers of theirs. If you look at the retail figures a month or so prior to the introduction, then a 3% increase would probably cost the average household a figure somewhere between Senator Le Suers figures and the JDA's. But the reality is that prices have increased far and above the 3% and there is NO consumer protection. Both Senator's Walker & Le Suer said (during the radio interviews prior to implementation) that although they would take stringent punitive measures against profiteering, consumers were free to vote with their feet and shop elsewhere. If they would only give us the freedom of choice and allow in other retailers, then we would see how much we have been fleeced by the incredibly high charges imposed by retailers and worst of all, the carriers that bring the goods in. By the way, who does own Condor Shipping? Are there any States Members on the board of directors? A long time ago, Senator Le Suer actually said it was acceptable for the poorer sections of our society to pay more to bring in the wealth to the island. I wonder where the successful economy and moral standpoint that could operate harmoniously together are coming from, because it isn't from him or his cabal.

Trevor
Do I trust Terry's figures - a man who let's not forget thinks you can clothe a child for £150 a year? Think not. The JDA figures are the accurate ones and this response is just another example of the usual spin. If we got rid of the Communications Unit (£300.000 for loads of glossy half-truths and downright lies at the taxpayer's expense and similar waste/over spending Ministers might actually find the books a little easier to balance without shafting the ordinary working public.

Ryan (Host)
Gull - no the figures are right - they're based on my 'current' shopping bill so it shows exactly what GST is CURRENTLY costing me.

However it may be that I'm 'spending' more now than I did pre-GST but that doesn't havea bearing on what my GST bill is every year (or would be if we had to pay it to the States ourselves).

Also there are other reasons your food bill might have increased by that much - the price of food, the price of fuel, the price of raw materials have all gone up drastically over the last few months.

Sqn Leader C Gull
Ryan, I don’t think you are doing your sums correctly my old friend. GST may be costing you £328 per year based on a 3 per cent increase but have you dug out an old shopping receipt ( pre GST ) ?.Check your numbers, the cost of essentials has increased more like 25% . My food bill alone – four chicks in the nest and Mrs Gull – has increased by approx £50 per week … and I bet I don’t eat as much as you!

You are in: Jersey > Inside the States > Other Business > The cost of GST

GST Exemptions

The main goods and services that will not attract GST are:

  • Employees’ salaries
  • Insurance and banking services
  • Postal services
  • Medical charges and prescription medicines
  • Supplies made by charities
  • Purchase, lease or rent of a home
  • School fees and registered child care
  • Exports and international services to non-residents
  • Air and sea fares to and from Jersey

A full list of exemptions is available in the booklet GST and the Consumer (see link above).



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