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The Island's Treasury Minister says a VAT cut for hospitality businesses would mean service cuts or more taxes elsewhere.
In the House of Keys this week, Dr Alex Allinson faced questions from Arbory, Malew and Castletown MHK Jason Moorhouse about support for the sector.
Last week, the Licensed Victuallers Association, which represents pubs, called for VAT to be cut to help the struggling industry.
Dr Allinson says cutting VAT isn't as simple as it sounds: