Senator Le Sueur says that the figure is £642, but the JDA puts it at £1,000.
Interesting as these disparate statistics are, they will be of less concern to the average consumer than a simple fact – people are now paying more for essentials and luxuries as a result of GST.
And while there is merit in the intellectual arguments that the new tax is necessary to reduce the Island’s dependence on direct taxation and to help plug the infamous ‘black hole’ anticipated because of other fiscal changes, most Islanders simply and understandably resent the adverse impact on their disposable income.
It is, of course, unfortunate that the introduction of GST has coincided with a widespread economic downturn caused by the international squeeze on credit. It is equally unfortunate that commodity shortages are also leading to higher prices for necessities ranging from rice to fuel. There was never going to be an ideal time to introduce GST, but the present circumstances are undoubtedly reinforcing the impression that, suddenly, the pound in the pocket is buying less than a couple of months ago.
If there is comfort to be drawn from this initial period as GST beds in it comes from two sources. Firstly, Senator Le Sueur seems optimistic that the tax can be pegged at three per cent for longer than the three years for which this rate is already guaranteed. Secondly, Environment Minister Freddie Cohen says that, because of the effect of GST on people’s spending power, environmental taxes will be put on hold.
Meanwhile, as well as presenting costings for GST, JDA member Deputy Geoff Southern is proposing that GST totals should be shown at the till so that shoppers can see at a glance how much tax they are paying. As well as flying in the face of the principle that GST should be kept as simple as possible so that it can be levied at the lowest possible rate, this has provoked alarm among retailers, who quite rightly point out that they have already suffered tremendous upheaval and incurred substantial costs to cope with GST.
In spite of these objections, Deputy Southern’s proposal will find some popular support – not least because it is very difficult to understand why the final total at the till was not chosen in preference to individual pricing in the first place.
