This news release is issued to draw attention to a temporary cut to fuel duty from 6pm on 23 March 2022 and VAT relief for energy saving materials from 1 April 2022.
The fuel duty changes will be implemented by the Hydrocarbon Oil Duties Act (Amendment) (No. 2) Order 2022.
The reductions is a response to the global energy crisis following the pandemic, as well as Russia’s invasion of Ukraine to help with rising costs of fuel.
The rates of fuel duty on petrol and diesel will decrease by 5 pence per litre for 12 months. Where practical, a proportionate cut will also apply to fuel duty rates which are lower than the main rates for petrol and diesel, including red diesel.
There will be an application of VAT relief on the installation of Energy Saving Materials (ESMs). This will mean wind and water turbines will be added to the list of ESMs and the complex eligibility conditions will be removed. The relief will increase further by introducing a time-limited zero rate for the installation of ESMs. The changes will take effect from 1 April 2022
For further information, please contact Isle of Man Customs and Excise on +44 1624 648190.