Isle of Man road tax rise and electric vehicle charge approved

People will be able to pay vehicle duty in six-month instalments

Road tax on the Isle of Man is to rise by 10% and electric vehicles will be charged for the first time in April.

Under the changes approved by Tynwald the option of paying the tax in six-month instalments will be introduced.

Infrastructure Minister Chris Thomas said while the rise would not be welcome news, the income was needed.

He said although some may see the £65 electric vehicle charge as inappropriate environmentally, "road maintenance needs to be funded".

Mr Thomas said the average 10% increase "compares favourably with inflation since 2020", since no increases were introduced in 2021 and 2022.

An additional £6 charge for six-month road tax payments would mitigate for the recurring drop in revenue of £165,000 a year which is expected due to some only taxing a vehicle for half the year, he added.

'Sticking plaster'

But Rushen MHK Michelle Haywood called for a change in the way funds for road maintenance were collected, suggesting it be raised as part of general taxation paid by all road users rather than just motorists.

She argued the current system would not generate enough revenue in future as the number of fossil fuel cars on the island's roads dropped.

Douglas North MHK David Ashford said while he welcomed the six-month option of payment, he agreed the system should be changed.

The latest increases would "shove a sticking plaster over the whole situation" but not provide a long-term solution, he added.

Mr Thomas said it was his current intention to "harmonise the treatment of fossil fuelled and non-fossil fuelled vehicles during the coming 12 months".

The department would be "being bold" in future and consultation would take place on "big issues" surrounding the future funding of the maintenance of all the island's roads and pathways, he added.