Peter Tabb is concerned Vehicle Registration Duty will increase

Peter Tabb from the Motor Trades Federation and the Channel Island Tobacco Importers said he hopes there will not be many changes to Vehicle Registration Duty and the price of petrol and cigarettes.

Last year's budget saw the introduction of Vehicle Registration Duty on all cars except hire cars.

And petrol went up by the rate of inflation and cigarette prices were increased by about 14%.

States would in fact lose a very significant amount of revenue Peter Tabb

The budget plans will be announced next week and will be lodged with the States.

They will then be debated during the first States sitting in December.

Mr Tabb said the price of cigarettes now is about the same price as in the UK, significantly more than on the continent and almost double the cost of cigarettes in Guernsey.

He says while the airport duty free shop is doing well, town retailers have been suffering as a result of constant price increases in tobacco.

"Sales are declining, sales outlets are declining and in practice the sales are shifting elsewhere," said Mr Tabb.

"I understand they want to balance the books but if people no longer purchase their tobacco products here, the States would in fact lose a very significant amount of revenue."

Mr Tabb also thinks it is likely Vehicle Registration Duty will be added on hire cars this year.