Paul Domaille, managing director of Classic Flowers, said growth was stagnant since LVCR was withdrawn.

BBC: Profits and jobs in Guernsey hit by loss of VAT relief

Louis Jean, a member of the States of Alderney, said the scrapping of LVCR had contributed to falling population figures.

BBC: Profits and jobs in Guernsey hit by loss of VAT relief

Low Value Consignment Relief (LVCR) will not apply to goods sent from the Channel Islands to the UK from 1 April.

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Senator Alan Maclean said it was difficult to ascertain exactly the full effects of the loss of Low Value Consignment Relief (LVCR) one year ago.

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Mr Riseley said postal operators were experiencing significant changes in the market including a drop in bulk mail due to the loss of Low Value Consignment Relief (LVCR).

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Earlier this year, the BBC reported that Jersey-based Play.com was shutting down its online retail business after the government closed the Low Value Consignment Relief (LVCR) loophole.

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"The removal of this major market distortion should be welcomed by all UK businesses that wish to trade online, " said Richard Allen, spokesperson for Retailers Against VAT Avoidance, a group that has campaigned against LVCR.

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