UK Chancellor Rishi Sunak MP announced in the Spring Statement earlier today that fuel duty rates for petrol and diesel will be temporarily lowered by 5p for a period of 12 months.
In accordance with the Customs and Excise Agreement with the UK, the Isle of Man will also apply this decrease with effect from 6pm today (Wednesday 23 March 2022).
The Isle of Man will also follow the UK in reducing the VAT rate on energy-saving materials and heating equipment from 5% to 0%, from April 2022.
Treasury Minister David Ashford MBE MHK said:
‘The Treasury notes with interest the announcements made today regarding the UK Government’s Spring Statement. While elements will have an impact here on the Island soon if not immediately, others will provide important points of discussion to be addressed in due course. As highlighted in my Budget speech last month, a comprehensive review of National Insurance is ongoing and changes announced to the UK threshold will be considered as part of this process.’
Details on the changes to fuel duty and VAT will be made available on Customs and Excise area of the Isle of Man Government website.