Proposed vehicle tax changes postponed

Government is delaying potential changes to vehicle tax on Island until later this year.

The Vehicle Duty Order 2021 was due to be considered by Tynwald in March but government has confirmed it's now being moved until after the current Covid-19 lockdown is eased.

The proposals include a one per cent increase in 2021 as well as using weight instead of engine size to calculate costs from 2022.

If approved, it would also see a surcharge for diesel cars and light commercial vehicles and a £50 duty for electric vehicles.

Infrastructure Minister, Tim Baker MHK, says: "This Order was placed on the March Tynwald agenda before the current lockdown started. 

"Had I known then that we would be facing a surge in the number of cases and that people would be worrying about the future, I would have waited for a more suitable time.  

"The next best thing is to withdraw the motion and to bring it back at another time, reflecting then any changes that need to be made. That is what I will be doing."

As a result, the option to pay road tax for six months has been delayed.