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Fuel tax increases cannot be subsidised by government says Treasury Minister

by isleofman.com 1st March 2011

THE Isle of Man will not be copying a fuel tax rebate system as operated in the outer islands of Scotland where new surcharges have been absorbed by the government.

 

That was the answer in today’s sitting of the House of Keys to questions about the impending 10p per litre increase expected in petrol prices which will come into effect on April 1st.

 

Treasury Minister Anne Craine was asked whether the Isle of Man would consider assisting the Island’s car drivers by adopting such a policy. “Those on lower incomes in our society are already finding life difficult and will find things even more difficult when the 10p increase in petrol comes in.

 

“This will further lead to the cost of essentials, goods and services all increasing to keep businesses solvent.” He reminded Mrs Craine that the cost of food had risen by 8.15% in the last year, fuel and light by 8.6%, motoring by 10.9% and LPG gas prices by 24.79%.

 

“The outer islands of Scotland have reduced excise duty on fuel products by 5p. Would the Minister consider a similar scheme for the Isle of Man?”

 

Mrs Craine replied, “I’m afraid I’m not in a position to consider such a scheme for the Isle of Man. It is encumbent on us to ensure that our spending is rightly distributed. I believe we did attempt to address those concerns within the budget for those on low incomes.”

 

However, Mrs Craine left the way open for Mr Cannan to approach her with any other suggestions which may help the Isle of Man to cope with the current economic situation. “I am happy to discuss any other suggestions Mr Cannan or any other Member may have.”

 

 

Posted by isleofman.com
Tuesday 1st, March 2011 12:44pm.

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