They say that having compared costs in the Island with those in the UK – excluding duty costs and VAT – they have found much higher margins in the prices that Island firms charge, even taking account of added freight costs.
Yesterday’s Budget proposed raises in the amount of duty on tobacco, alcohol and fuel over the level of inflation.
The document also includes the comparison of Jersey and UK prices, and Finance say that it shows that the amount of duty charged in Jersey is relatively low.
The Budget states: ‘In all of the examples of dutiable products, the proportion of price made up by duty is significantly lower in Jersey than the UK.
Even allowing for other cost factors in Jersey, there would appear to be a much greater margin in the retail price of products in Jersey than exists in the UK.
It is the level of these price margins which needs to be further investigated and addressed.
