Deputy Laurie Morgan, president of the Advisory and Finance Committee, said the island was in a different position to Jersey, which is considering introducing a sales tax.

A senior tax advisor has warned Guernsey to steer clear of VAT or sales tax in trying to make up a projected shortfall left by zero rate corporation tax.

Deputy Morgan said there was a considerable amount of money in the island's contingency fund and decisions about sales tax coming into effect in Guernsey would not be made before the elections in April.

"The States will have two chances to consider all of these things when they are put forward by the Treasury and Resources Committee and there will still be two years before they come into effect.