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Evidence that retailers are absorbing the cost of GST rather than passing it on to customers

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WRITTEN QUESTION TO THE CHIEF MINISTER BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON MONDAY 16th JULY 2007

Question

Will the Chief Minister release to members the evidence he has to support his assertion made in oral questions on 17th April 2007, that many retailers would absorb the costs of GST and not pass it on to their customers, and if not, why not?

Answer

In oral questions on 17th April 2007, I said that there is evidence that a number of (rather than many) retailers who will absorb all or part of the 3% GST in their prices when the tax starts.

The  evidence to  support this  statement  is  from  both confidential  retailer  submissions as part  of  the  major consultation exercise in 2006, and the ongoing programme of education/advisory visits conducted by the States Treasury and Resources Department's GST Compliance staff.

I refer members to the Summary of Responses to the GST consultation exercise' document which is available on the States website.