A burden charities need least
SENIOR politicians who have drawn up the plans for the island to introduce a goods and services tax have fully admitted that, quite sensibly, they have drawn on Jersey’s extended experience of operating and administering such a tax in coming to their proposals.
Rather strange then, that they have openly attracted the ire of the charitable sector by pursuing simplicity rather than taking a similar approach to Jersey in dealing with charities.
Under Jersey’s GST laws, charities must pay GST on their purchases and business expenses at the time of purchase, but can claim refunds.
The concerns of local charities about the impact of GST on them may seem relatively minor, but they will be both paying it and charging it to customers – both likely to impact their financial position. Steve Byrne from the GSPCA says it will affect how his charity, and others, who work hard for the community, can bring in income.
‘They save the States money in so many ways, and to cause issues with income streams and increase costs will without doubt put pressure on every charity and good cause in Guernsey,’ he said.
The contributions that charities make locally can be easy to overlook. And while the States occasionally references its desire to do more with the third sector, largely local charities are left to fend for themselves. This won’t help them.