A review is to be carried out into the tax people in Jersey pay when registering a car.
The investigation into the controversial vehicle registration duty, currently £300 per car, will look at its impact on Jersey's economy.
Proposals to raise the tax by a quarter were approved by the States during the Budget debate despite strong opposition from Jersey's motor trade.
The duty also applies to hire cars at a reduced rate of 15% of the full tax.
Jersey's government wants to review the tax and make recommendations for the future.
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