THE Isle of Man is to retain its five per cent VAT rate on home repairs on a permanent basis.
The move follows successful negotiations with the UK Treasury.
The existing arrangement had been due to expire on December 31.
Isle of Man Treasury Minister Anne Craine MHK said: "I am delighted that I can now remove any uncertainty associated with this matter.
"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."
Collector of Customs and Excise Denis Maxwell added: "There is no doubt that the reduced rate for domestic repairs has achieved what it set out to do, namely reduce activity in the shadow economy and encourage employment.
"We therefore welcome the United Kingdom's agreement to make the rate a continuing feature of the Island's indirect taxation system."
