Announced today, the proposal will allow companies to be refunded three-quarters of all the GST they spend on everything from desks and computers to electricity and water.
Due to be introduced in 2008, GST is to be set at a flat three per cent and will have very few exemptions.
But as many of the Jersey’s financial companies have the majority of their business outside the Island, the Treasury has ruled that it would not be fair to charge them GST on all the services they buy in order to sustain their business.
To facilitate the refund, the Treasury has proposed a ratio of a 25% to 75% split for all companies, although it has been acknowledged that not all companies have 75% of their business abroad.
