THE standard rate of VAT in the Island will increase from 17.5 per cent to 20 per cent on January 4 2011.
This means any goods subject to value added tax will become more expensive for shoppers.
However there was very good news for the Island earlier this month when it was announced the Isle of Man is to retain its five per cent VAT rate on home repairs on a permanent basis.
The arrangement had originally been due to expire today (December 31) but following negotiations with the UK Treasury a decision was made to continue it.
Isle of Man Treasury Minister Anne Craine MHK said earlier this month: "We believe that the retention of this rate of tax will continue to be a stimulus for the local building trade in these difficult times."
