Alex Allinson on the move to drop rate from 5% to 0%
A cut in the VAT rate on electricity bills from five percent to zero from October is 'absolutely' the right thing to do according to a former treasury minister.
Government has announced it is following suit with the measure announced by the UK Prime Minister Andy Burnham yesterday (21 July).
The Island is obliged under the Customs and Excise Agreement to maintain the same VAT rates as the UK.
Ramsey MHK Alex Allinson has been speaking to Manx Radio:
Government says the cut in the rate will extend to small businesses that qualify for domestic energy VAT relief and are not VAT registered.
It will also be extended to eligible charities and residential care homes.
The UK Government expects the move will save households an average of £45 a year.
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