Scrutiny of Government's GST review launched
29th April 2021
The Corporate Services Scrutiny Panel are to scrutinise the Government's review of the way GST is collected on personal goods imported into Jersey. The Government's review, which launched in January this year, is considering whether online retailers should charge GST on all personal goods, whilst also removing the existing GST 'de minimis' level which charges 5% tax on imports over £135.
The first phase of the Panel's work will primarily focus on the Government's report, which is due to be delivered to the States Assembly in June 2021. Should the Government propose changes to GST collection, the Panel will seek to identify whether these changes demonstrate value for money and benefit public finances, as well as whether they are applied in a fair, consistent way which considers the purchasing needs of Islanders. The Panel will compare these proposals to those changes implemented in the UK and EU.
Prior to the report being published, the Panel will focus on a January letter from the Minister of Treasury and Resources. The Panel will deliver a report of its findings and recommendations to the States Assembly by the end of August 2021.
Senator Steve Pallett, who will be leading the Panel's review, said: "It is important that any proposed changes to GST that arise from the Government's review are scrutinised. We will examine the deliverability of these changes and the potential financial impact on revenue raising and on individuals, particularly on those on a lower income.
"When carrying out this work, we will ensure that the views of key stakeholders, including that of personal taxpayers, Jersey businesses and logistic companies, are taken into account when delivering our findings and recommendations."
Due to his experience within transport and logistics, the Constable of St. John, Andy Jehan, has been co-opted into the Panel for this review.
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