Jersey to increase GST 3% to 5% in 2011

Jersey, a protectorate of the UK, has announced plans to raise its Goods and Services Tax (GST) from 2% to 5% from 1 June 2011.

GST, which is similar to Value Added Tax, was first introduced toJerseyin 2008.  It is seen as a new revenue source to help balance to government’s reliance away from business taxes related to financial services.  The introduction of GST led to an immediate 6% increase in inflation.