An air travel tax on passengers departing Irish airports was introduced on 30 March 2009. The tax is expected to yield €105 million in 2010, despite the impact of volcanic ash on air travel earlier this year. Similar taxes apply in the UK, France, Australia, New Zealand and the US. An air travel tax will apply in Germany and Austria from January 2011. There had been calls for the abolition of the tax, which is blamed for the reduction in our visitor numbers. Having examined the issue in detail, I have decided to introduce a single revised rate of air travel tax of €3, to come into effect on 1 March 2011. I wish to be clear that this reduced rate is being applied on a temporary basis until the end of next year.

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