Tynwald will be asked to approve a 3.2% increase in road tax.

A review of vehicle duty is taking place, with the government saying the current model is financially unsustainable and predates its action plan for achieving net zero carbon emissions by 2050.

Plans for a new 10-year model are being drawn up and the Department of Infrastructure said it expects to be able to announce details later this year.

Road tax has not been increased since April 2018.

If approved, the Vehicle Duty Order 2020 to be considered at this month’s Tynwald sitting will see road tax in all other categories increasing by 3.2% from April this year.

This equates to an increase of 1.6% per year, given there was no increase last year, the DoI argued.

The government is also simplifying the treatment of motorcycles and historic and veteran vehicles.

All motorcycles will be charged a flat rate of £25 a year, replacing the current arrangement involving a range of categories and charges

Veteran vehicles over 30 years will be charged duty of £25, replacing the current discount for historic vehicles over 25 years, and £16 for veteran vehicles.

Infrastructure Minister Ray Harmer MHK said: ‘Finding a sustainable way to fund our roads is a complex challenge and the changes being considered now are the first steps on that journey.

’How the new funding model may develop over future years is in the process of being finalised and I look forward to announcing proposals in due course.’