The gov has announced a cut in fuel duty from 6pm tonight. This follows on from the UK’s Chancellor outlining the same cut in his Spring statement.
The fuel duty changes will be implemented by the Hydrocarbon Oil Duties Act (Amendment) (No. 2) Order 2022. Under the terms of the Customs and Excise Agreement the Manx gov is required to keep the duty rates and reliefs available on hydrocarbon oils the same as those imposed in the UK.
A statement said: ‘The reductions is a response to the global energy crisis following the pandemic, as well as Russia’s invasion of Ukraine to help with rising costs of fuel. The rates of fuel duty on petrol and diesel will decrease by 5 pence per litre for 12 months. Where practical, a proportionate cut will also apply to fuel duty rates which are lower than the main rates for petrol and diesel, including red diesel.’
Also following on from Rishi Sunak’s Spring statement, there sill be an application of VAT relief on the installation of Energy Saving Materials (ESMs).
The statement added: ‘This will mean wind and water turbines will be added to the list of ESMs and the complex eligibility conditions will be removed. The relief will increase further by introducing a time-limited zero rate for the installation of ESMs. The changes will take effect from April 1 2022.’