There has been much controversy over the proposed 5% levy, which could be introduced as early as 2007.

Senator Ted Vibert's panel will look at the possible effects of the tax after it is officially endorsed in February.

The controversial tax is aimed at correcting a budget deficit in the island which is also introducing a zero rate corporation tax.

During 2005, the panel will also examine early years education and the status of the Waterfront Leisure Pool.

It will also report on the island's waste policy and review the Jersey Harbour Trust port proposals.