THE Policy Council is to move forward on the presumption of a general corporate tax rate of 10% after resounding backing by States members yesterday.

But Chief Minister Lyndon Trott (pictured) was at pains throughout yesterday’s debate to insist that the 10% rate was based only on a presumption and was in no way fixed.

Its proposals for a planned review of the island’s tax strategy comes after an apparent rejection by several EU member states of the island’s zero-10 tax strategy, which is set to be placed on the agenda at next month’s meeting of the Economic and Financial Affairs Council on 18 November.

The Policy Council’s proposals were backed by 42 votes to zero, with just deputies Sam Maindonald and Al Brouard abstaining after they had earlier failed with an amendment calling on the States to avoid committing itself to any sort of rate until it knew more about what the EU wanted.

Speaking after the debate, Deputy Maindonald said businesses would be dissuaded from coming to Guernsey by the decision. She had earlier told members the island should wait until Jersey and the Isle of Man had showed their hands too.

‘I am concerned that we have lost our tax competitiveness today. It will prevent businesses coming here from today. I think the States decision was wrong, but it the clear majority favoured Policy Council’s decision.’

Before the conclusion of yesterday’s debate, the Institute of Directors branches in both Guernsey and Jersey issued a joint statement warning the States it was a mistake to respond too quickly to the European Code of Conduct Group’s reported issues with zero-10.