Finance and Economics this week made their clearest statement yet that the VAT-style tax will form part of their proposals to fill the £100 million gap in revenues when the EU tax code takes effect from 2008.A rate of between 5% and 8% is being considered, although no decisions have yet been made on what it will be imposed upon and what will be exempt.Chamber of Commerce chairman Bob Hassell said that many of his members would be opposed to the tax but that if it were introduced, he would lobby to keep it low.
‘The money has to be found from somewhere, but it is important that we get the balance right,’ he said.
‘As I have said before, this must start with the States reducing their expenditure, and I am encouraged to see that that appears to be happening.
