On Air The Afternoon Show Alex Brindley | 3:00pm - 5:30pm

Will VAT cut be passed on?

It's the first day of the new, lower VAT rate - and traders in the Island must decide whether they will pass it on.

Businesses have had just a week to make changes to their accounting systems after the announcement by UK Chancellor Alistair Darling to reduce VAT from 17.5 per cent, to 15 per cent.

It's not compulsory in the Isle of Man to alter the price of goods, and the decision is being left to individual firms.

Some say changing prices will be a costly process - making only a marginal difference to the consumer.

Chief Inspector of Trading Standards John Peet (pictured) says they're expecting a number of queries (audio file attached):

Clip 1

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