Manx residents divided over island's 2% income tax hike

John Short said he believed a tax rise was "justifiable" to support health services

A rise in the higher rate of personal income tax from April has divided opinion on the Isle of Man.

The Treasury Minister announced the 2% hike in his budget for the upcoming year to Tynwald members on Tuesday.

Alex Allinson pledged it would help generate a £20m ring-fenced boost for health spending.

However, the move has divided opinion, with one resident describing it as "the worst budget for the working people of the Isle of Man for decades".

Others said the rise was "justifiable" and they felt they understood why it was having to happen.

Michael Josem, from the Manx Taxpayers' Alliance, said: "The lowest paid workers in our community will suffer from the biggest increases in these tax rates."

Rosemary Teare questioned whether the island would remain financially attractive for investors

John Short from Port Erin said: "I think it's entirely justifiable to increase the top rate of tax to pay specifically for the health service, which I think everybody knows is hopelessly underfunded.

"People are always complaining about the lack of services, or the poor quality of services. The services have got to be paid for."

Rosemary Teare from Ballaugh agreed "heath care needs more money" but questioned whether the island would remain as attractive for financial investment.

Joy Ellis said she would be happy to pay more tax to boost health services

"We have benefitted from the lower tax rate in the Isle of Man for quite some time," she added.

Former nurse Joy Ellis from Santon welcomed the changes.

She said: "I think as a society we have a duty to look after people that haven't got as much. I'm happy to pay 2% more on my income tax to fund healthcare."

But Eric Lee from Peel said it "seems like the working man is getting hit again".

Eric Lee said he was worried about the negative impact on the "working man"

He said he did not have any faith that the added income for the government would make a difference.

"That's just going to line their pockets. That's all it's going to do," he said.

The Isle of Man budget 2024-25 was voted through after a five-hour Tynwald debate, in which 24 members voted for and six against.

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