Corporate Services - Approved Panel Minutes - 5 October 2006

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Agenda matter

Action

1

Report on impact of GST on the sale of domestic housing

The Panel met with the GST Sub Panel to receive the report on the impact of GST on the sale of domestic housing. (Reference Minutes of 10th Meeting of the Sub Panel

2

Presentation of the Interim Goods and Services Tax Report

The Panel received a draft version of the Interim Report on GST. It was advised that the Sub Panel had reached the following principal conclusions

1. that zero ratings would not significantly ease the burden of the tax on low income families.

2. that the administrative and compliance costs of zero rating food had been overstated

3. that the issues with regard to a range of social issues, such as education, childcare, residential care in these areas should be addressed in principle outside the GST system by means of  additional  financial  support  from  the  States  where appropriate.

4. that the position of the Treasury with regard to zero rating housing  maintenance  and  repair  was  inconsistent  with  its position of zero rating of food.

5. that members were entitled to take a philosophical and moral viewpoint on taxing essential items.

6. that,  rather  than  making  specific  recommendations  in  the report regarding zero ratings the Sub Panel had agreed to leave States members to consider the evidence and make up their own mind on whether zero ratings would be appropriate.

The Panel agreed to support the report on this basis, subject to receiving a final copy of the report on which it could make comment as necessary.

The Panel was informed that the timetable for the publication of the Interim Report, scheduled for 10th October, was most likely to slip in view of the additional research and evidence which had just been received. It noted further that the Chairman would be out of the Island from 11th October until 18th October inclusive.

It was agreed that the final version of the Interim report, including