Over in the Isle of Man we had our annual budget a week or so ago. One of the policies unveiled was:
“Mr Bell revealed that the 0% rate for shipping that was introduced last year is being extended to companies operating aircraft to and from the Island.
He said: “This will achieve consistency of treatment for all passenger transport companies. It should assist smaller companies to consolidate their position. Our current shipping legislation has enabled a highly respected and beneficia shipping register to develop. It is hoped that this move within the aircraft industry could facilitate a similar register for aircraft.”
The Minister added “Similarly, consultation with interested parties following the growing success of the shipping register has resulted in the legislation enacted in January of this year to enable the Island to develop its yachting register for those privileged enough to own vessels whose value would normally exceed $20 million”
So…operate passenger aircraft to/from IOM and pay no tax in the Isle of Man! Of course you still have to pay it elsewhere, usually the UK, but at least it encourages airlines to use IOM where possible. It will be interesting to see how airlines react to this.
By: mongu - 4th March 2003 at 18:22
Remember, you only pay tax if you make a profit!
Therefore the likes of EuroManx are unlikely to benefit much, at least for a while. The old Manx Airlines was continually struggling for a profit so with the damage BA has done it is probably a loss maker now.
Initially I think it will encourage air taxi operators.
Ryanair – quite unlikely. Flybe expansion – more likely, and certainly would go down better than an O’Leary invasion!
By: Saab 2000 - 4th March 2003 at 18:11
Good for tourism though…there is only so long until the low cost boat leaves and the ones who miss out will really regret it. I’m not a fan of the low cost strategy but where credit is due, if a tourism industry is in danger of decline, then bringing in low cost operations is inevitable to hault the decline.
By: KabirT - 4th March 2003 at 12:10
All our budget recently gave was that AI and IC wont be privitized! 😡
By: EGNM - 4th March 2003 at 10:39
that wud shorly have to be one of the worlds shortest B737 sectors!
By: wysiwyg - 4th March 2003 at 10:09
If you’re lucky Ryanair will leave you alone.
By: Saab 2000 - 3rd March 2003 at 18:59
Do you think this could encourage Ryanair in?
By: wysiwyg - 3rd March 2003 at 09:25
A very sensible move that will enable the all important air links to be maintained. I’d like to see more regions follow suit.
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March 2, 2003 at 4:46 pm