States debate GST delay petition

The States needs money to fill a financial black hole

A petition calling for the introduction of a new tax to be delayed in Jersey is being debated by island politicians.

States members will consider whether to delay the goods and services tax (GST) until public finances have been examined independently.

The 19,200-signature petition was presented to the States in September.

It calls for alternative methods of raising funds to be fully investigated, but the Treasury Minister said that had already been done.

Terry le Sueur outlined the alternatives that were explored and submitted his comments on why GST was considered the best option.

From 1 May 2008, an extra 3% will be added to most goods and services including clothing and food.

Revenue from the tax will help make up money which will be lost to the government once a new low tax system for businesses comes in.