Guernsey 2013 budget agreed after changes made

Guernsey's 2013 budget has been approved by the States after five changes were made to the proposals.

The withdrawal of a move to reduce mortgage interest relief and an extra 1% on tobacco duty were among changes agreed on Wednesday.

Rises in duty on alcohol, fuel and property, which came into effect in November, were approved.

Deputies also agreed some insurance and fiduciary companies would be charged 10% corporate tax from 1 January.

Previously such companies paid no tax under the island's Zero-10 system, which was formally approved by the European Union last week.

This move aims to raise an additional £12m in tax in 2013.

After more than a day-and-a-half of debate on the changes to the budget, it was approved unanimously.

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