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How much GST will be saved by average household as a result of the exemption on medical supplies and services

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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 15th JULY 2008

Question

Will the Minister inform members how much GST the average household will be saved as a result of the exemption on medical supplies and services?

Answer

When the issue of excluding medical services and products was first proposed in 2006 (under Proposition 86/2006) I provided in my report an estimate of the total revenue likely to be lost. This estimate in October 2006 was £800,000 per annum and I also stated that the impact on voluntary compliance and cost of administration would in each case be low.

Based on the current exclusions in the GST Law under Schedule 5 that relate most closely to the description of supplies you have provided above the total annual revenue loss would be in the region of £700,000. Using the latest adjusted household expenditure figures the estimate of GST saved by the average household will be around £19 per annum.