20 October 2008
The first payments under the GST bonus scheme are now available. The bonus is worth £50 in 2008 and can be claimed by any household that is not paying income tax and does not receive Income Support.
Households that receive protected payments under Income Support can also claim the bonus if they do not pay income tax. These households have been sent an application form which should be returned to Social Security before 15 December.
The bonus provides a compensation for the cost of GST paid on food since the introduction of the new tax in May this year. The households that will receive the Bonus did not benefit from the other measures already in place to help local families.
Families receiving Income Support without a protected payment saw their benefits rise in May to cover the full cost of GST on all purchases, not just food.
Tax payers who are entitled to what is known as ‘Marginal Relief ‘have benefited from increased tax exemption thresholds which reduce their ITIS payments and tax bills.
The bonus will be paid as a lump sum once a year.
The Minister for Social Security, Senator Paul Routier, explained “I am very pleased that we have been able to introduce this bonus payment. The combination of the bonus scheme, increases in Income Support rates and increased income tax thresholds means that all local residents on lower and middle incomes have been compensated for the cost of GST on food.”