The Finance Committee is currently keeping income tax at 20%

The shortfall will occur when a zero rate of tax for companies takes effect on the island.

The island is cutting corporate tax to encourage finance houses to stay.

Senator Dick Shenton has tabled six questions for the Finance President, Senator Terry Le Sueur, to answer in the States.

Suggested rates

Senator le Sueur has proposed a system of VAT as one solution to help make up the deficit.

However, Senator Shenton is suggesting 13 different new taxes he would like to be considered as alternatives to the proposed sales duty.

His suggestions include a capital gains tax, inheritance tax and a development tax.

He also wants to know why the Finance Committee thinks it is important income tax is kept at 20% and is suggesting a rate of 35% for people with a net income of more than �80,000.

The questions come after Senator Shenton held a public meeting to hear the views of people affected by planned cuts in services as part of other States attempts to save money.