Joe Costello (Dublin Central, Labour)
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Question 294: To ask the Minister for Finance if he will outline the range of Government taxes applied to air travel here at present; if he is satisfied that these taxes are properly applied by the airlines; if he will consider abolishing the punitive €10 passenger air travel tax; if the opening of Dublin Airport's Terminal 2 on Friday 19 of November would be a suitable occasion to make such an announcement; and if he will make a statement on the matter. [43024/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In accordance with section 55 of the Finance (No.2) Act 2008, an air travel tax is levied on air travel. Subject to some exceptions, the tax is charged at the rate of €2 per passenger in the case of a flight from an airport in the State to another airport located not more than 300 kilometres from Dublin Airport and at the rate of €10 per passenger in all other cases. The yield from the air travel tax in respect of the nine months it was in place in 2009 was €84.4 million and the yield in 2010 was €104.6 million - total €189 million. Almost all the fuel used for commercial air travel is jet kerosene, which is exempt from excise duty.

As regards VAT, the position is that the transport of passengers and their accompanying baggage is exempt from VAT by virtue of paragraph 14(3) of Schedule 1 to the Value-Added Tax Act 1972.

I do not accept that the air travel tax has a material impact on tourism numbers. Prospective visitors will base their choice of destination on a range of issues. These will include the cost of travelling to a destination but are more likely to be influenced by the cost structure within that destination, and the range of activities and visitor attractions on offer.

However, taking account of some of the comments made last year, I announced in the Budget a single revised rate of air travel tax of €3 with effect from 1 March 2011 and will assess the impact of this to see if passenger numbers are affected.

Joe Costello (Dublin Central, Labour)
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Question 295: To ask the Minister for Finance if his attention has been drawn to the fact that 30% to 40% of costs to the haulage industry come from fuel costs; his views on whether hauliers should have a special fuel regime similar to that of farmers with red diesel; and if he will make a statement on the matter. [42719/10]

Joe Costello (Dublin Central, Labour)
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Question 296: To ask the Minister for Finance if he proposes to retain the current carbon tax on the haulage industry; his views on the Irish Road Haulage Association proposal to allow hauliers to apply the carbon tax charge on their services similar to the manner in which VAT is invoiced; and if he will make a statement on the matter. [42718/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 295 and 296 together.

I have no plans to exempt any sector from the carbon tax or to introduce a special low excise fuel scheme for the haulage industry. The only reliefs from the carbon tax are for those companies that participate in the EU Emissions Trading System (ETS).