MINISTERS are asking politicians to allow them to scrap a previous commitment to remove GST from period products because they feel they have ‘surpassed’ this aim by providing free products in some locations around the Island.
In May 2022, politicians voted to instruct the next Treasury Minister to remove the 5% GST on sanitary products.
The proposal was put forward for debate by then-Senator Kristina Moore, who pointed out that Jersey was the only place left in the British Isles still to have what has become known as the ‘tampon tax’.
In a report setting out her argument, she said that having GST on period items meant that they were viewed as a ‘luxury item’.
‘Periods are not opt-in,’ she said at the time. ‘They are not something that is a choice and they are not a luxury. At present, there are charities which provide menstrual projects in schools. However, women should not have to turn to charity to deal with period poverty.’
Despite securing the support of the States Assembly for the GST exemption, Deputy Moore went on to address the problem by placing free period products in different locations around the Island as part of her ‘100-day plan’ which she launched after becoming Chief Minister.
This attracted criticism from Corporate Services Scrutiny Panel chair Deputy Sam Mézec, who challenged her on the apparent lack of progress on the GST removal.
Deputy Moore argued that the free products scheme – introduced in October 2022 – meant that the ‘intention of my proposition has therefore been achieved and exceeded’.
As a result of this, a proposition has now been lodged asking the States Assembly to ‘agree to rescind its decision to exempt GST from menstrual sanitary products and continue the implementation of a scheme by the Council of Ministers to provide free products to those who need them’.
Treasury Minister Ian Gorst has asked Members to rescind the plans, saying that the Council of Ministers ‘considers it unnecessary’ to make period products exempt from GST ‘given that period products are now available for free’.
‘The intention and purpose of P66/2022 [the decision to make period products exempt from GST] has been met and surpassed by the government,’ he added.
The proposition has also been signed by the Chief Minister, Health Minister and the Social Security Minister.
In his proposition, Deputy Gorst also explained that ‘exempting goods from GST creates administrative burdens and costs both for retailers and government’.
He claimed that the free period scheme had ‘dealt with the immediate issue of affordability’, and therefore ‘any persuasive argument for a tax exemption falls away in favour of maintaining Jersey’s long-standing tax-policy principles’.
Deputy Gorst also said that it was ‘unclear whether cost savings would materialise to any noticeable extent for Islanders and visitors who still choose to buy [period products] as tax savings may not be passed down to customers’.
He concluded: ‘Recognising the challenges and uncertainties of GST zero-rating, the Council of Ministers considers that providing free products is a better and more impactful way of guaranteeing access to free period products for those who need them, and therefore having the best immediate and long-term impact that will benefit Islanders.
‘Accordingly, Members are asked to rescind the decision of the previous Assembly in favour of endorsing the scheme to provide free products to anyone who needs them.’
Deputy Gorst’s proposition will be debated in the States Assembly next month.
