In a statement explaining the likely nature of the changes, the authorities announced that:

"Jersey is changing the way it taxes companies and individuals, in order to safeguard our economy against international competitive pressures. As a result, Jersey’s tax take is expected to fall by £80-£100 million a year by 2010."

"The States has agreed to meet that shortfall by a combination of cutting waste and increasing efficiency in our public services, growing the economy and increasing taxes."

"As part of the tax raising package, the States has agreed in principle to phase out allowances for high earners. The Finance and Economics Committee’s detailed proposals, known as ‘20 % means 20 %’ will mean the gradual withdrawal of allowances over three years for those who can afford to pay more tax."

According to a BBC News report, Mr Keen warned that the introduction of new taxes could limit the Island's economic growth unless high street sales figures remain buoyant, and consumer confidence continues to be high.

However, he reportedly went on to add that the Chamber broadly supports the introduction of new taxes to help compensate for the lost tax revenue.