Removing tax from food could cost £14m - minister
Summary
Removing the island’s goods and services tax (GST) from food would cost £14.4 million a year, according to the treasury minister. The tax removal would mainly benefit wealthier islanders, as they spend more on food, while lower-income households would save less.Key Facts
- GST currently applies to food on the island.
- Removing GST from food would reduce government revenue by £14.4 million yearly.
- Wealthier islanders would benefit more because they spend more on food.
- Lower-income households would save around 12% annually, while the richest could save 28%.
- When GST was introduced, the government increased personal tax allowances and support payments to help residents.
- Officials say a broad GST with targeted support helps people best manage food costs.
- A protest happened in Guernsey against a proposed new 3% GST, which might start in 2028.
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