The government of Jersey has rejected calls to remove the Goods and Services Tax (GST) on food products, BBC reported.
MP and Finance Minister Elaine Miller stated that eliminating the tax would lead to increases in other expenses. A petition with 1,500 signatures had called for the removal of the 5 percent GST on food to ease the cost of living for the island’s residents.
Miller explained that the government believes the best way to support low-income households is through direct assistance such as income support and personal tax relief. “Jersey’s low level of GST, combined with generous personal tax reliefs and income support, leaves more money in residents’ pockets and gives them the choice of how to spend it,” she added.
The minister noted that reducing the tax on food would require raising GST on other goods and services by around one percentage point to offset the loss of revenue.
According to Statistics Jersey, food prices on the island increased by 4.1 percent in the 12 months up to June 2025. | BGNES