Isle of Man Budget 2022-23

[Happier diner]

1 minute ago, Non-Believer said:

 key economic generators such as boating and golf courses will remain rebated-fuel entitled...

Yes, because they are not the road. It's a road fuel tax and always has been. It's been abused here because of the loophole. 

[Roger Mexico]

12 minutes ago, Non-Believer said:

So it would appear that construction, plant hire and fishing will be hit then, although it's good to see that other key economic generators such as boating and golf courses will remain rebated-fuel entitled...

Fishing seems OK.  I shouldn't have trusted the NFU who seem to have taken the UK Government's list and rewritten it, introducing more ambiguities.  Here's the original from the policy paper

This measure introduces legislative changes through Finance Bill 2021 and subsequent secondary legislation to restrict the entitlement to use red diesel and rebated biofuels from April 2022 to the following qualifying purposes:

• for vehicles and machinery used in agriculture, horticulture, fish farming and forestry. This includes allowing vehicles used for agriculture to be used for cutting verges and hedges, snow clearance and gritting roads
• to propel passenger, freight or maintenance vehicles designed to run on rail tracks
• for heating and electricity generation in non-commercial premises - this includes the heating of homes and buildings such as places of worship, hospitals and townhalls; off-grid power generation; and non-propulsion uses on permanently-moored houseboats
• for maintaining community amateur sports clubs as well as golf courses (including activities such as ground maintenance, and the heating and lighting of clubhouses, changing rooms etc.)
• as fuel for all marine craft refuelling and operating in the UK (including fishing and water freight industries), except for propelling private pleasure craft in Northern Ireland
• for powering the machinery (including caravans) of travelling fairs and circuses

(my bold).  Though there may be problems for fishing boats visiting Ireland or elsewhere in the EU.

[Non-Believer]

43 minutes ago, Happier diner said:

Yes, because they are not the road. It's a road fuel tax and always has been. It's been abused here because of the loophole. 

It's not just "here" though, it's a UK Govt initiative that we will be obliged to pass on and will potentially hit the construction sector that the IoM economy is currently so reliant upon, including the smaller operations.

A great deal of construction plant isn't used on the road either, tracked excavators and various other fixed and mobile plant. How they justify including this in the tax net whilst excluding leisure sectors takes some pondering.

[Happier diner]

2 minutes ago, Non-Believer said:

It's not just "here" though, it's a UK Govt initiative that we will be obliged to pass on and will potentially hit the construction sector that the IoM economy is currently so reliant upon, including the smaller operations.

A great deal of construction plant isn't used on the road either, tracked excavators and various other fixed and mobile plant. How they justify including this in the tax net whilst excluding leisure sectors takes some pondering.

If the excavators and mobile plant do not go on the road, surely they can use any fuel they like. Government does not have jurisdiction on private land does it?

[Roger Mexico]

3 minutes ago, Happier diner said:

If the excavators and mobile plant do not go on the road, surely they can use any fuel they like. Government does not have jurisdiction on private land does it?

Of course the Government has jurisdiction over what happens on private land.  It's the Government.  Try telling the police you're allowed to run a crack-den in your front room because it's on private land.  The change makes it clear that what's important is purpose not position.

Mind you there is an exemption for circuses, so maybe the DoI will be OK.

[Happier diner]

1 minute ago, Roger Mexico said:

Of course the Government has jurisdiction over what happens on private land.  It's the Government.  Try telling the police you're allowed to run a crack-den in your front room because it's on private land.  The change makes it clear that what's important is purpose not position.

Mind you there is an exemption for circuses, so maybe the DoI will be OK.

I should have said with regards to road fuel duty. It was a question not a statement?

[WTF]

4 hours ago, Derek Flint said:

 

My rates (council tax) bill is around £500 dearer than I was paying in Ramsey on a similar value property. 

a similar value of property in the UK i would expect to be a bigger property than you had here.

[Happier diner]

2 minutes ago, WTF said:

a similar value of property in the UK i would expect to be a bigger property than you had here.

Once upon a time that was the case.

Edited February 20, 2022 by Happier diner

[Derek Flint]

3 hours ago, WTF said:

a similar value of property in the UK i would expect to be a bigger property than you had here.

Similar but different. 4 bed Property in half an acre up the top end of town over in Ramsey. 5 bed Victorian terrace in a really good postcode in the UK.

[Josem]

9 hours ago, Happier diner said:

If the excavators and mobile plant do not go on the road, surely they can use any fuel they like. Government does not have jurisdiction on private land does it?

The Government applies a lot of taxes to various things used on private land. Such taxes (most obviously VAT, but also other customs, duties and excises) are budgeted to account for over 37% of Isle of Man Government revenue this coming financial year.

[ManxTaxPayer]

22 minutes ago, Josem said:

The Government applies a lot of taxes to various things used on private land. Such taxes (most obviously VAT, but also other customs, duties and excises) are budgeted to account for over 37% of Isle of Man Government revenue this coming financial year.

Good point. But luckily now we're out of the EU we can scrap VAT on fuel bills at least. It was one of the big selling points of Brexit. So, how quickly do you think that can be implemented? 

[Josem]

9 minutes ago, ManxTaxPayer said:

Good point. But luckily now we're out of the EU we can scrap VAT on fuel bills at least. It was one of the big selling points of Brexit. So, how quickly do you think that can be implemented? 

It can be implemented whenever the UK Government passes the law to do it! Unfortunately, the UK Government doesn't seem to want to do that. They should - and the Isle of Man Government should encourage it to do so!

The Manx TaxPayers' Alliance* has been supporting the effort by UK unions and UK trade groups to do this since October last year - Subsequently, the UK's Labour Party announced their support too. Unfortunately, I'm unaware of any Manx-based support for this effort. If you support cutting VAT on fuel bills, you should write to your MHK and let them know of your support for the Manx TaxPayers' Alliance's policy here.

Alternatively, someone could ask the Minister and Members of the Isle of Man Government Treasury Department whether they agree with the Manx TaxPayers' Alliance and the UK Labour Party's policy to cut VAT on fuel bills.

(*Disclosure: I serve as founder/director of the Manx TaxPayers' Alliance)

[Josem]

(Unfortunately, the hold-up appears to be the European Union's continued control over Northern Ireland in this area. Since any reduction in UK VAT on energy bills would not apply to Northern Ireland, the UK Government does not want to introduce this policy, because it would lead to differential tax policies on fuel bills between Northern Ireland and the rest of the UK)

[ManxTaxPayer]

6 minutes ago, Josem said:

(Unfortunately, the hold-up appears to be the European Union's continued control over Northern Ireland in this area. Since any reduction in UK VAT on energy bills would not apply to Northern Ireland, the UK Government does not want to introduce this policy, because it would lead to differential tax policies on fuel bills between Northern Ireland and the rest of the UK)

Really? How have Spain and Belgium manged to cut VAT on energy bills in response to the crisis? 

[Josem]

12 minutes ago, ManxTaxPayer said:

Really? How have Spain and Belgium manged to cut VAT on energy bills in response to the crisis? 

Because the EU rules mandate a minimum of 5% VAT in this area. Spain reduced its VAT rate on energy bills from 21% to 10%. Belgium reduced its VAT rate from 21% to 6%. Both cuts are only temporary. 

By contrast, the UK is already at the minimum permitted by the European Union, which is 5%.

 

They have been able to temporarily cut their VAT rates because they are normally so incredibly high compared to both the minimum on energy bills, and compared to the UK's VAT rate on energy bills.

 

For your information, Spain's (temporary) 10% level is higher than the UK's (permanent) VAT rate of 5% on energy bills. Belgium's (temporary) 6% level is higher than the UK's (permanent) VAT rate of 5% on energy bills.

Edited February 20, 2022 by Josem
Added "which is 5%." at the end of the second paragraph.