Hopes summer VAT cuts will ease cost of living pressures for families and businesses

IOM Government mirrors UK action

There's going to be a temporary VAT reduction on selected activities on the Island over the summer period.

The Manx government's announced plans to mirror the UK's action to ease cost of living pressures for families.

VAT on children's meals in restaurants, family tickets to the cinema and theatre, and admission to attractions will go down from 20 percent to five between 25 June and 1 September.

It's hoped the move will help local businesses by extension by increasing their footfall.

There'll also be an extension to the temporary reduction in fuel duty until 31 December and a drop in red diesel duty from 15 June until the end of the year.

That will be cut by more than a third, falling from 10.18p to 6.48p.

Treasury Minister Chris Thomas MHK says: "We recognise that household budgets feel the strain from rising costs and continue to monitor and respond to where support is most needed. 

"Cutting VAT on family activities and extending fuel duty support is set to help residents manage everyday expenses while also giving a welcome boost to local businesses during the summer months."

Environment, Food and Agriculture Minister Clare Barber MHK says: "Fuel costs are a real and significant pressure for our hard-working farming and fishing businesses. 

"This significant reduction in red diesel duty will provide practical support and greater certainty, helping to protect livelihoods and enabling producers to continue contributing to the Island’s economy."

You can find more information about the temporary VAT reductions here and fuel duty here.