Today will see the standard rate of VAT on the Island jump from 17.5 to 20 per cent.
The percentage hike isn't good news for shoppers with a number of items subject to VAT going up in cost.
The rise will bring in an estimated additional £25 million a year for the Island which is expected to help slightly appease Government budgets.
The Island will be losing £100 million this year after the UK Government revised the VAT sharing arrangement, it's a significant jump from the £50 million that was cut last year.
In some good news for Islanders however the five percent VAT rate for home repairs on a permanent basis, has been left unchanged.
Treasury Minister Anne Craine says it will bring an estimated £25 million in to the Island. (audio above)
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