Isle Of Man Considers Car Tax Reform
by Jason Gorringe, Lowtax.net, London
22 January, 2018
The Isle of Man's Department of Infrastructure has launched a public consultation on whether the territory's vehicle excise duty needs to be reformed.
The territory's car tax takes the form of a compulsory annual payment, required from earners of most vehicles that are driven or parked on public roads. Fees are calculated based on engine size or on carbon emissions, depending on the year a vehicle was first registered.
The Department says the application of vehicle excise duty has become increasingly complicated in recent years. For instance, there are more than 80 different payment categories.
The Department says it wants to amend the charging structure to tackle inconsistencies between carbon emissions and engine size, and to protect the environment by encouraging motorists to use more environmentally friendly vehicles.
A new consultation document has been issued. It includes proposals for a new system to enable taxpayers to settle their liability in installments and looks at new licensing technology. It looks at how other countries' systems operate to collect enough revenue to fund road maintenance.
The closing date for the consultation is March 2, 2018.
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