Call to scrap zero-ten tax system

Guernsey should scrap the zero-ten tax strategy says an island politician.

The system, to charge some companies no corporation tax and others 10% tax, came into force in January 2008 with the aim of attracting businesses.

But there are concerns that the States will be forced to bring in new taxes and charges and cut services to fill the financial gap in the downturn.

Deputy David De Lisle said he would prefer to see the island's previous tax system back in place.

Last year, Treasury and Resources Minister Charles Parkinson said that because zero-ten was based on economic growth it had been left in "difficulty" by the downturn.

He said the island could face a budget deficit of between �30m and �40m in the next couple of years.

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