The controversial toilet tax introduced earlier this year has been scrapped.

Instead, householders and businesses will have to pay a sewerage charge tied to the rateable value of their property.

There was criticism of the new scheme in Tynwald today, with members stating that the Manx Utilities Authority was using an outdated rating value system that was 'totally unfit for purpose'.

The flat rate toilet tax was ?50 this year and was due to rise to ?100 next year.

MUA chairman Alf Cannan MHK told Tynwald: 'People will benefit from it being set against the rates. This is the most obvious, practical way to do it. It's not a perfect system. It's not good news for the population but it's a better system.'

He gave the example of a small terraced property in central Douglas paying ?52 while a property worth ?850,000 would pay more than ?100. He said businesses would bear a heavier burden, in some cases paying more than ?1,000 annually, and adding: 'But we are talking about trying to find an equitable solution...this is the least worst option.'

Mr Cannan said Manx Utilities had to secure additional income of ?10million per year by 2021 to enable it to meet budget rebalancing changes.

He's proposing a new sewerage rate of 62 pence in the pound for 2015/16. Mr Cannan said this meant 70 per cent of the population would be paying less than ?100 per year, while 30 per cent would pay more.

- Watch Alf Cannan's briefing to the media on MTTV at http://www.manx.net/tv/mt-tv/watch/67591/water-rates-changes

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