The Isle of Man won't be bringing in Air Passenger Duty for planes with fewer than 20 seats.
From April next year, the UK is extending the tax to smaller aircraft, meaning those flying out of Britain will be hit with around £13 extra to fly to the Isle of Man.
However, the charge won't be added when flying out of Ronaldsway.
A number of routes between the Island and the UK are served by aircraft in this category.
Treasury Minister Eddie Teare [play clip]
Eddie Teare MHK