The amount motorists pay in vehicle duty, or road tax, will rise for the first time since April 2018, if proposals being brought forward by the Department of Infrastructure are approved at this month’s sitting of Tynwald.
The Department is also taking the opportunity to consolidate the treatment of motorcycles and simplify the treatment of historic and veteran vehicles.
If approved, the Vehicle Duty Order 2020 to be considered at this month’s Tynwald sitting will result in the following changes taking effect from 1 April 2020:
- All motorcycles will be charged a flat rate of £25 a year, replacing and simplifying the current arrangement involving a range of categories and charges
- Veteran vehicles, over 30 years, will be charged duty of £25, replacing the current discount for historic vehicles, over 25 years, and £16 for veteran vehicles
- Vehicle duty in all other categories will increase by 3.2% from April 2020, which equates to an increase of 1.6% per year
A review of vehicle duty is taking place as the current model is financially unsustainable and predates the Isle of Man Government Action Plan for Achieving Net Zero Emissions by 2050. A new 10-year model is in the process of being finalised and the Department expects to be able to announce details later this year.
Infrastructure Minister Ray Harmer MHK said:
‘Finding a sustainable way to fund our roads is a complex challenge and the changes being considered now are the first steps on that journey. How the new funding model may develop over future years is in the process of being finalised and I look forward to announcing proposals in due course.’