Children's meals to be cheaper under VAT cut

BBC

The price of children's meals in Isle of Man restaurants is set to come down in a bid to ease the cost of living on families thanks to a new reduction in VAT on some items.

Families settling their bills will see a discount between 25 June and 1 September as the tax is lowered from 20% to 5% over that period.

The cut will also apply to family tickets to cinemas, theatres and shows, as well as admission to attractions.

The reduction mirrors measures announced in the UK to ease cost-of-living pressures, and is coupled with a continued freeze on fuel duty until 31 December.

Treasury Minister Chris Thomas said it was recognised that household budgets are feeling the strain from rising costs.

"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," he said.

The cost of duty applied to red diesel is also set to be cut by about a third – from 10.18p to 6.48p per litre – from 15 June in a bid to help the farming and fishing industries.

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

She added the duty cut "will provide practical support and greater certainty, helping to protect livelihoods and enabling producers to continue contributing to the Island's economy".

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