Jersey's politicians have agreed to reduce corporate profits tax to 0% or 10% for some corporations.

The move is to ensure the island's finance industry remains competitive after the EU signalled it will no longer tolerate Jersey's tax system.

A form of Pay As You Earn tax will come in by 2006 and allowances for people on high incomes will be phased out.

For many of the measures it has been agreed the Finance Committee will carry out further research and come back to the house with detailed proposals.

During the debate many members spoke of their concerns about the effect States policy may have on steps to increase Jersey's population.

Many also supported the proposal to make sure people on low incomes are not affected by the tax changes.