The Manx TaxPayers’ Alliance wholeheartedly welcomes recent endorsements from community groups in the Isle of Man for a substantial reform of the VAT rates impacting our local hospitality industry. This sector, vital for our economy and community, is currently stifled under the heavy burden of a 20% VAT rate, aligning unwelcomely with the UK standard but ill-suited to the unique challenges our island businesses face.
The Manx TaxPayers’ Alliance has led the island in opposing the Government’s VAT increase on hospitality as we came out of the COVID period:
- In April 2021, research by the Manx TaxPayers’ Alliance showed that the previous VAT level benefited Manx customers.
- In September 2021, the Manx TaxPayers’ Alliance called for the VAT increase on Manx hospitality to be delayed.
- In February 2022, the Manx TaxPayers’ Alliance called for the further VAT increase on Manx hospitality to be delayed.
Of course, it would have been helpful for the Isle of Man Government and other lobby groups to listen to the Manx TaxPayers’ Alliance three years ago: many hospitality businesses have been lost over the last three years, causing harm to Manx consumers, to visiting tourists, to workers and to business owners.
Earlier this week, the plight of Victory Café highlighted the harsh realities of such fiscal policies. High overheads and severe recruitment challenges are but a few of the hurdles our hospitality businesses encounter, threatening both their competitiveness and sustainability. The Manx TaxPayers’ Alliance’s advocacy for a reduced VAT rate is not just a relief measure, but a crucial strategy for ensuring the long-term vitality of these enterprises that are the bedrock of the Manx economy.
“Despite the government’s reluctance, as indicated by Enterprise Minister Tim Johnston’s dismissal of a potential rate reduction, we believe that steadfast advocacy and continuous dialogue can lead to positive change. The history of temporary VAT reductions during the pandemic showed us that such measures are possible and beneficial. A permanent or more flexible approach could provide the lifeline our hospitality sector desperately needs,” said Michael Josem of the Manx TaxPayers’ Alliance. “We, at the Manx TaxPayers’ Alliance, echo this commitment and will persistently support efforts to highlight the significance of this issue until real and tangible changes are achieved.”
We urge all stakeholders and the community at large to join us in this vital campaign. Together, we can advocate for a VAT system that recognises the unique circumstances of the Isle of Man and fosters a thriving, sustainable hospitality sector that continues to serve our island well into the future.
For those interested in joining this cause or learning more about our efforts, please reach out. The time for change is now, and your support is invaluable as we strive to make a meaningful impact on our community’s economic landscape.