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Page last updated at 10:12 GMT, Friday, 22 August 2008 11:12 UK

Government to scrap tax on food

Basket of food
The government says islanders are facing higher food bills

People living in Jersey will no longer be charged the goods and services tax (GST) on food in future.

The Council of Ministers has decided to scrap the 3% tax on food from next spring because of increasing prices.

However, domestic fuel will not be exempt from the tax which was introduced in May.

Islanders who need help to heat their homes will have winter fuel payments increased and tax on petrol and diesel will not be raised in the next budget.

The States of Jersey is expecting to raise £5m more than expected from GST and said it wanted to help islanders who are faced with higher food shopping bills.




SEE ALSO
Increase in use of frozen foods
11 Aug 08 |  Jersey
New island goods tax introduced
06 May 08 |  Jersey

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