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Sales are masking effects of VAT rise

A senior figure at Isle of Man Customs and Excise believes the increase in VAT which came in yesterday (Tuesday), will be noticed in due course.

The standard rate went up from 17.5 to 20 per cent, although the list of exempt items, including daily foodstuffs, public transport, books, newspapers and children's clothing, remains the same.

Many of the Island's retailers are currently holding January sales, which means the effects of the rise might not be immediately apparent.

However, deputy collector of Customs and Excise Andy Corcoran says that is likely to change:

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