Will a tightening of Jersey's GST import rules shift shopper habits?

ITV Channel's Phil Wellbrook reports...

The amount of money people in Jersey can spend on online purchases before being taxed will soon be cut in half.

The Goods and Services Tax (GST) de minimus value is dropping from £135 to £60 from Saturday 1 July.

It means that anyone spending £60 or more on an order will be taxed 5%, either at the point of purchase if the retailer is GST registered or when the goods arrive in Jersey.

It has been suggested this could change the way people buy larger products as it makes online shopping less appealing.

However, a Jersey business consultant believes the planned tightening of tax rules will not make any difference to whether someone shops online or locally.

Kevin Keen thinks the change is generous and fair, saying: "They've created this loophole which they're gradually closing.

"If you were shopping in the UK and shopping from outside of the UK, you'd pay VAT on absolutely everything.

"This is not about helping retailers, it's about making the tax efficient."

Mr Keen says the change is due to raise about £2 million a year in revenue for the government.

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