Effort to close tax loophole doesn't go far enough
The Jersey government's attempt to seal a tax loophole some retailers have used to sell cut-price CDs has been criticised by industry group The Forum of Private Business (FPB) for letting some retailers unfairly under-cut others in CD sales.

The Forum said retail giants, including Asda, Tesco, Boots and Woolworths, had undermined high street shops by not charging VAT on goods sold from Jersey. It praised the channel island's efforts to stop any more retailers from abusing the system, but questioned the impact of the action when so many retailers would be allowed to continue. The Forum called on the island's government to go further and crack down on retailers already licensed to sell goods within its remit.

FPB chief executive Nick Goulding (pictured) will meet with the UK Treasury in Wesminster tomorrow to discuss how the loophole can be closed.

Goulding said: 'It is utterly absurd that retail giants should gain an unfair competitive advantage over high street shops by cynically exploiting the tax system. It is like Ricky Hatton fighting Lenox Lewis with one arm tied behind his back. Moreover, the Treasury is losing cash, an estimated£80 million a year, rising to£200 million in the next few years.'