The temporary reduced rate of 5%VAT on hospitality services and admissions to certain attractions is to remain in place until September 30, the government announced.

And the Coronavirus Business Support Scheme (CBSS) has been re-opened.

The decision on VAT comes in line with the UK budget announcement.

The temporary rate was introduced last July to support hard-hit businesses in the hospitality sector in the light of the Covid-19 crisis.

Treasury Minister Alfred Cannan MHK confirmed the extension to the reduced rate of VAT is in line with the Isle of Man’s Customs and Excise agreement with the UK and fully supports the aim of providing further assistance to the island’s hospitality sector.

From October 1 the VAT rate on these services will rise to 12.5% for six months.

Meanwhile the CBSS is now open for applications to support businesses and self-employed people who have regular business overheads of £250 or more per month who are financially affected by the circuit break lockdown now in operation.

It includes a grant payment of £1,500 to eligible applicants who declare they have experienced or are expected to suffer a 25% or more reduction in turnover/earnings because of the lockdown.