Guernsey's States has rejected an amendment to plans over how to fill a shortfall in island finances when corporation tax is scrapped. The States plans to abolish the tax in 2008 to keep the island competitive as an off-shore banking centre.
Budget deficits of up to �50m have been projected when the tax is scrapped.
Deputy Charles Parkinson's amendment aimed to put more burden on businesses and less on islanders to fill any gaps. It was defeated by 28 votes to 19.
The Policy Council is predicting that future economic growth will fill the tax deficit.
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