Jersey's States are debating proposals for a 3% goods and services tax.

The tax is planned to cover a �100m shortfall when a zero-rate corporation tax starts to keep the island's finance industry competitive in the future.

Senator Stuart Syvret has called the 3% tax disgraceful and wants some food, children's clothes, newspapers and books as well as medicines made exempt.

His amendment to the fiscal strategy will be debated on Thursday.

Senior citizens in Jersey have held a silent protest in Royal Square against a VAT-style goods and services tax.

Jersey's States started a debate on Tuesday on proposals for a 3% tax.

The tax is planned to cover a �100m shortfall when a zero-rate corporation tax starts to keep the island's finance industry competitive in the future.

Protesters say the move will affect those least able to cope, including people on low and middle incomes and have called for exemptions.

Children's clothing, medical supplies, books and newspapers should be exempt from the levy, said Age Concern.

The island's branch of the charity said it understood the levy was inevitably going to be introduced, but that changes needed to be made to ensure those most financially vulnerable were not adversely affected.

Jersey Institute of Directors had suggested raising the goods and services tax to 10% so income tax could drop to about 10% as well.

But Senator Stuart Syvret has criticised this saying it would favour richer islanders.

Deputy Geoff Southern says a 2% rise in income tax and higher social security payments could replace the plans being put forward by the Finance and Economics Committee.