Goods and Services Tax: Exemption or Zero-Rating for Health Foods (P81/2011): Ministerial Response

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A decision made on 6 May 2014:

Decision Reference MD-HSS-2014-0007
Decision Summary Title :	Response to Proposition 81/2011 “Goods and Services Tax: exemption or zero-rating for health foods”: list of ‘healthy foods’		Date of Decision Summary:	2 May 2014
Decision Summary Author:	Head of Health Improvement		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	Martin Knight
Written Report Title :	Response to Proposition 81/2011 “Goods and Services Tax: exemption or zero-rating for health foods”: list of ‘healthy foods’		Date of Written Report:	2 May 2014
Written Report Author:	Medical Officer of Health and Head of Health Improvement		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Response to Proposition 81/2011 “Goods and Services Tax: exemption or zero-rating for health foods”: list of ‘healthy foods’.
Decision(s): In May 2011, Proposition P.81/2011 “Goods and Services Tax: exemption or zero-rating for health foods” was debated. Paragraph (a) of that proposition was agreed and requested that the Minister for Health and Social Services present to the Assembly (within 3 months), a report listing those foodstuffs that can be defined as ‘healthy foods’. An amended timescale of 12 months was agreed by States members on 16th September 2011. Following review of options and policy approaches, it has been concluded that it is neither feasible, practical nor desirable to develop a list of ‘healthy foods’. The Minister approves the presentation of a Report to the Assembly on the conclusions of the review following P.81/2011.
Reason(s) for Decision: To update the Assembly on the review following P.81/“Goods and Services Tax: exemption or zero-rating for health foods”.
Resource Implications: None
Action required: Request the Greffier of the States to arrange for the Report, Response to Proposition 81/2011: “Goods and Services Tax: exemption or zero-rating for health foods”: list of ‘healthy foods’, to be presented to the States.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Goods and Services Tax: Exemption or Zero-Rating for Health Foods (P81/2011): Ministerial Response

2 May 2014

Response to Proposition 81/2011: List of ‘healthy foods’

Introduction:

In response to Proposition 81/2011 requesting the compilation of a list of ‘healthy foods’ the Public Health team led by the Medical Officer of Health undertook a review of international evidence of practice and policy approaches. The conclusion of the review was that it is neither feasible, practical nor desirable to develop a list of ‘healthy foods’. This report recommends that if improved health outcomes were the intention of producing a list of ‘healthy foods’ then priority should instead be given to supporting the development of a new States of Jersey Food and Nutrition Strategy.

Background:

On September 16th, 2011 States Members voted on proposition 81 ‘Goods and Services Tax:

Exemption or zero rating for health foods’. The Assembly voted in support of (a) to request

the Minister for Health and Social Services to present to the Assembly within 3 months a report listing those foodstuffs that can be defined as ‘healthy foods’. The Assembly voted against (b) to agree that the healthy foods as listed by the Minister for Health and Social Services should be exempted or zero-rated for the purposes of Goods and Services Tax (GST) from 1st January 2012.

It has been recognised at the outset that there would be considerable challenges in attempting to define any list of ‘healthy foods’. No definitive list exists anywhere in the world. There is no realistic means of devising a list that would not be accompanied by negative effects and unintended consequences. It has not been achieved anywhere internationally with links to measurable improvements in health outcomes. In fact any one element of a diet consumed out of balance can lead to negative health consequences. Considerable evidence shows it is a balance and range of food in a diet that contributes positively to health. It is recognised that there has been a considerable time lapse between the original Proposition and this response, which is regrettable. However, this is a complex matter that has required a considerable amount of international research.

The review of the policy approaches and evidence base that has been carried out by the Public Health Directorate analysed the likely benefits, disadvantages and risks of possible approaches to identifying any ‘healthy food list’. Further background can be found in the appended review.

Conclusion:

The conclusion of this review, that it is neither feasible, practical nor desirable to develop a list of ‘healthy foods’ was presented to and accepted by the Council of Ministers on 12th March 2014.

It was agreed that further work is unwarranted in the pursuit of a list of ‘healthy foods’, and that priority in 2014 should be given to beginning the development of a comprehensive Food and Nutrition Strategy for Jersey, built on an evidence-based, multi-agency approach to promoting good nutrition and healthy weight.

Deputy A E Pryke

Minister for Health and Social Services

H:\Food\States Report - response to P81 of 2011 Healthy Food List.doc

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