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Chamber of Commerce backs call for VAT overhaul

Gov't urged to assist hospitality sector

The Isle of Man Chamber of Commerce has backed calls for an overhaul of VAT to help Manx hospitality businesses.

Earlier this week Victory Café on the Mountain Road published a plea asking for some form of rebate system to help reduce the burden caused by high overheads and widespread recruitment issues.

The Chamber says the current VAT rate of 20 per cent 'places a significant strain on our hospitality sector.'

Adding; it believes a reduced rate is 'crucial for the sustainability and vitality of these businesses, which are the cornerstone of our Island’s economy and community and will continue to serve the island well long into the future.'

Enterprise Minister Tim Johnston told Manx Radio a reduction in the rate wouldn't be possible.

But the chamber says it's encouraging 'constructive dialogue between our members, individual businesses and trade associations with the government and will continue to highlight the importance of this issue until tangible changes are implemented.'

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