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A proposal to introduce a general sales tax in Guernsey has been rejected by the island's government.

Deputy Mike Hadley claimed a 2-3% sales tax on the price of everyday goods could generate £30m a year to help fill the island's financial black hole.

However, an overwhelming majority of deputies rejected the proposals.

In 2009 deputies approved a five-year strategy aimed at saving up to £70m through cut backs and the sharing of departments' resources.