UK Chancellor George Osborne’s announcement that the planned 3p rise in fuel duty has been dropped will cost the Manx taxman dear.
Manx Treasury Minister Eddie Teare MHK has given his initial reaction to yesterday’s UK autumn statement.
He said: ‘No doubt the headlines will be that the 3p rise in fuel duty due in January 2013 has been abolished. This will cost the Treasury around £2 million a year, but I am sure it will be welcomed by the island’s motorists.’
Motorists in the island pay the same duty as the UK under the customs agreement.
Mr Teare added: ‘The main thrust of the Chancellor’s speech appears to be to encourage work, paid for by restricting the rising cost of benefits for certain groups.
‘We share that objective, and will be reviewing our own plans in light of his announcements today.’
Treasury officers will study the detail of the statement for any other areas of interest relating to the Isle of Man.