Written answers
Wednesday, 20 April 2011
Department of Finance
Tax Code
9:00 am
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Question 74: To ask the Minister for Finance the cost to the Exchequer of abolishing the â¬3 travel tax; and if he will make a statement on the matter. [8789/11]
Michael Noonan (Limerick City, Fine Gael)
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The air travel tax yielded â¬105m in 2010. Budget 2011 introduced a single air travel tax rate of â¬3 with effect from 1 March on a temporary basis, replacing the â¬2 and â¬10 distance related rates, in conjunction with a DAA incentive scheme. This reduction is estimated to cost the Exchequer â¬56m in tax this year. The Programme for Government includes a commitment to abolish the â¬3 travel tax subject to a deal being agreed with airlines to re-open closed routes and bring more tourists into Ireland. This measure, if implemented with effect from 1 July 2011, will cost â¬15m in 2011, â¬91m in 2012, â¬105m in 2013 and thereafter. These costs reflect the fact that the Budget 2011 reduction in the rate to â¬3 was on a temporary basis, i.e. the costs provided reflect the move from the full rate of â¬10.
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