Finance and Economics president Senator Terry Le Sueur said that fears that the tax here would be applied by adding three per cent at every stage in the chain from import to retail sale were unfounded.
He said that the main charge will be levied at the point of import and those involved in the chain after that will be able to claim rebates.
The States decided last month to adopt a three per cent across-the-board goods and services tax that will come into effect in 2008.
The effect will be that distributors, wholesalers and retailers will pay GST only where they have added value to the item for sale.
‘Most of the tax will be paid by an importer and most of the collection will be done at source,’ said the Senator.
He argued that despite the element of value added further down the chain, the tax itself should be relatively easy to calculate and to collect.
He accepts that it has not come across clearly that the tax will be applied in this way, but he remains confident that it will not throw up any unexpected difficulties.
‘The fact that we import so much into the Island works in our favour,’ he said.m
