Written answers

Tuesday, 19 January 2010

9:00 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Question 236: To ask the Minister for Finance if, in the interest of balanced regional development, the adjustments he will make in the Finance Bill to abolish the air travel tax applying to Shannon Airport; and if he will make a statement on the matter. [48463/09]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 280: To ask the Minister for Finance the amount raised in 2009 by the travel tax; and the estimate of the amount expected to be raised in 2010. [1378/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Question Nos. 236 and 280 together.

I am informed by the Revenue Commissioners that since the introduction of the air travel tax on 30 March 2009, it has yielded a total of €84.4 million in 2009. The expected yield for the full year in 2010 is approximately €125 million.

It should be recognised that tourists are only subject to the tax on their return journey. The additional €10 or €2 in the context of a much larger purchasing decision involving travel, hotel expenditures etc. should have only a limited effect on tourist numbers. The Government appreciates the airline industry continues to go through a difficult period. However, this difficult trading period arises primarily from weak world economic activity.

We currently face significant financial challenges and the air travel tax is an important revenue raising measure. The Government has tried to be as fair as possible in looking at areas for additional tax revenues. It is also worth noting that fuel used by commercial airlines is completely exempt from tax, so it's a sector that already has considerable preferential treatment. I have no plans to abolish the air travel tax.

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