On Air Early Breakfast Chris Williams | 5:00am - 7:30am

Prices go down as VAT increases

There's no evidence to suggest retailers in the Isle of Man will cash in on the rise in VAT.

That's the view of the Office of Fair Trading, which has been responding to suggestions in the United Kingdom press that shops could increase prices by between five and eight per cent.

From today (Tuesday), the VAT on the majority of high street items has gone up from 17.5 to 20 per cent, but OFT chief officer Paul Gelling says many traders are actually reducing prices:

Clip 1

More from Isle of Man News