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VAT cut on food comes into force today

Eating out could be cheaper

The cost of paying for a pub lunch or takeaway meal could go down today (15 July).

A cut in the VAT paid on food and attractions from 20 to five per cent has now comes into force, and will remain in place over the next six months.

The UK chancellor announced the change last week to boost the struggling hospitality sector, and the Isle of Man government is obliged to follow suit.

Some small businesses earn below the VAT threshold, but would consider expanding if the tax was permanently set at a lower rate.

One of those is Nick Clague of the Sugarloaf Cafe in Port St Mary:

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