An influential report has revealed a UK-style sales tax could earn Guernsey States an extra �110m a year. That is more than double the shortfall expected to be left by the planned reform of corporation tax in 2008.
Although there is no indication of support for the introduction of VAT, the National Audit Office study has highlighted ways money could be raised.
The report shows higher levels of petrol duty in the island could net �12m a year alone.
But Treasury and Resources Minister Lyndon Trott has ruled out the introduction of VAT for the present.
He said the preferred strategy for correcting the island's bank balance was to concentrate on savings.
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