Will you have to pay GST on refuse collections?

Mon 23 Jan 2023

Will Vale residents end up paying GST on parish services like "bin night" refuse collections if the controversial goods and services tax is approved by the States this week?

Bin night collections

The short answer is – the Vale Douzaine doesn't know, which is why Senior Constable Richard Leale would welcome clarification on this important topic, particularly since a number of parishioners have asked the same question.

"There's been no consultation that I'm aware of with the parishes on this, how it will affect us or our parishioners or how GST is to be applied to parochial services," he said. 

That, he said, was regrettable and, again as far as he was aware, there had been no formal opportunity for the douzaines to discuss the proposed tax change with States members or the States itself. 

5% increase 
"As far as I can tell from the policy letter to be discussed by the Assembly, the parishes will fall under the GST umbrella, which implies a 5% increase on refuse rates, quite apart from any uplift we may have to seek to apply in March to cover any rises the contractor might seek to impose when the tax eventually comes in."

Mr Leale said he had no intention of entering into the political debate on GST but it seemed clear that a number of important loose ends had yet to be resolved, hence his comments here on the issue.

"I'm aware there are moves to delay debate on GST for some of the other alternative suggestions to the tax to be taken into account. Seeing the uncertainty facing this parish and its 4,800 households, whatever happens, we would welcome the opportunity of some meaningful dialogue with government on the proposed new tax," he said. 

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