Islanders are being asked to contribute to a constellation on a new NHS Levy as a way of developing a new revenue stream for the island’s health services.
The new levy would be separate from income tax or NI contributions. The earliest practical date a levy could apply from is 2027/28, as new primary legislation would need to be enacted.
Spending on the island’s health service has increased by an average of 14% per year in recent years, as the DHSC and Manx Care have failed to keep spending under control.
Tax revenues make up the majority of government income, but they are not predicted to grow sufficiently to cover the rising cost of maintaining the health system at its current level.
The consultation highlights how introducing an NHS Levy would mean that decisions could be taken separately from income tax about who pays and at what rates.
It also asks for views on: what the levy should be charged on; how it should be collected; how couples who are jointly assessed for income tax purposes should be treated; whether there should be a maximum charge; and if it should include a levy-free amount similar to the income tax personal allowance.
Proportionate
Treasury Minister Dr Alex Allinson said: “I want to ensure that we listen to all views and legislate in the right way from the beginning, introducing a Levy which is proportionate and progressive.
“Analysing the responses to this consultation before making any final decisions and bringing forward primary legislation may take some time. A Levy would be a new tax for the Isle of Man and as such is a complex undertaking.”
The document is available to view and complete online at the Government’s consultation hub — consult.gov.im
To obtain a paper copy of the consultation, email consultation.ITD@gov.im or call 685316. Responses can be sent by return email or by post to Senior Policy and Legislation Officer, Income Tax Division, Government Offices, Douglas, IM1 3TX.
The consultation will run for 12 weeks and conclude on June 18 2025.
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