At the start of the year, the UK and Isle of Man both announced they were removing tax on women’s sanitary products, which was made possible due to no longer having to comply with EU rules on having a minimum sales tax.
Meanwhile, Scotland provides sanitary products for free, Guernsey does not have any VAT-style sales tax at all and the Republic of Ireland is the sole EU member state to exempt sanitary products from sales tax.
‘Period poverty’ has been highlighted as an issue recently and was raised by Senator Kristina Moore in a Scrutiny Panel hearing with Treasury Minister Susie Pinel on Friday. Senator Moore asked why Jersey was still applying its 5% GST rate to such items, unlike the other British jurisdictions.
The minister said that she was not a believer in exemptions to GST.
‘Our GST levels are considerably lower than the UK and Scotland. And in this case, what does sanitary products include?’ she said. ‘I think relief of GST on those products at this present time would be incredibly difficult.’
In a statement to the JEP she added: ‘Jersey’s approach to taxation has always been to ensure that any tax regime is low, broad and simple. This is why GST has always been applied at a low, consistent rate of 5% to all goods, with few exemptions. Jersey’s approach is simple for Islanders and businesses to administer, and ensures parity of taxation across different goods. I therefore do not support a reduction in GST on one type of product.
‘Support is available for people who are unable to afford sanitary products, including through the Red Box Project. I am also aware that the Social Security Minister [Judy Martin] has recently responded to a petition, agreeing to investigate any barriers which might stop people accessing sanitary products.’
Senator Moore said that she did not understand why a ‘creative solution’ could be found to relieve the Island’s women, especially those on lower incomes, of the cost of sanitary products.
‘I do absolutely understand the need to maintain a simple system in term of administration for GST,’ she said.
‘But if the minister was to use some creative thinking I’m sure we could come up with something to achieve goals like these.
‘I’m not suggesting a GST refund would be the right way to go, but I’m sure that the Treasury [Department] could make a simple calculation in terms of the cost of sanitary products to the average women of menstrual age over the year.
‘They could perhaps provide a payment to those on income support on an annual basis to cover the additional costs. That’s just one potential idea.’
