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Last Updated: Sunday, 22 January 2006, 18:00 GMT
Politicians considering sales tax
Guernsey's top politicians are taking a second look at introducing a sales tax in the island.

The Fiscal and Economy Steering Group had previously indicated it was against the idea as a way of raising money if corporation tax is scrapped in 2008.

In a previous report it instead favoured raising levels of social security contributions.

But Chief Minister Laurie Morgan said adverse public reaction to that prompted taking a sales tax seriously.

This year the States will debate whether to abolish corporation tax in 2008 to keep the island attractive to offshore investment companies.

But if the plans go ahead, an estimated �48m will have to be raised through other taxes and charges.


SEE ALSO:
States seeks advice on tax change
14 Jan 06 |  Guernsey
Minister warns of services cuts
29 Dec 05 |  Guernsey
Spending slashed in 2006 budget
25 Nov 05 |  Guernsey
'Tough decisions' ahead on budget
20 Nov 05 |  Guernsey
Call to clear up States finances
14 Nov 05 |  Guernsey


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