Retention of VAT agreement is important for the economy says Minister

Tue, 12 Jul 2011

The Manx government believes it would be too damaging for the Island's economy to break the VAT sharing arrangement with the UK.

It was announced today that the Isle of Man will lose another £75m per year in VAT revenue.

The United Kingdom had threatened to terminate the agreement if it wasn't renegotiated.

Treasury Minister Anne Craine says losing the agreement would see customs barriers between the Island and the UK.

She says this would be bad news for local businesses and residents.