GST may be set at 4.5%

Members have refused to tie themselves to a rate of 3% for the first three years in the Strategic Plan in case Senator Stuart Syvret successfully gets exemptions for essential goods approved.

He plans to lodge proposals to zero-rate items, including medicines, and if he is successful the tax take from a GST will fall, which means that the introductory rate will have to increase to meet Treasury targets.

St Ouen Deputy James Reed had attempted to get 3% for the first three years written into the Strategic Plan.He claimed that that was what the States had agreed and what the public were expecting.