And Treasury Minister Philip Ozouf has been asked to explain his comments about how Jersey’s mail order fulfilment industry exists because of a ‘kink’ in UK tax law.
The day after it was revealed that ministers have warned mail order fulfilment industry leaders to ‘brace themselves for a hit’ by the UK government, the head of Jersey Post says that the loss of the sector would be ‘a serious issue’ for the States-owned utility.
The coalition government is expected to tighten or close entirely the VAT loophole that allows Jersey companies to ship goods such as CDs and DVDs into the UK without charging the sales tax.
Jersey Post managing director Kevin Keen says that such a move would devastate the States-owned company, adding that mail order fulfilment amounted to more than half of their volume.
• See Thursday’s JEP for full report
