Still no clarity on Air Exit Tax – Breen

November 13th, 2008 - Pat Breen
Fine Gael’s Deputy Spokesperson on Foreign Affairs and Clare T.D. Pat Breen has been told today by the Minister for Finance Brian Lenihan T.D that the Minister looks likely to examine concerns raised in relation to the affect of the introduction of the €10 Air Travel Tax on the Aviation Sector in the context of the Finance Bill. 

Since the announcement of the introduction of this €10 Air Tax in the Budget, Deputy Breen has raised this matter with the Minister for Finance and the Minister for Transport and Marine. He also raised this matter on the Adjournment Debate in the House last week.

“I hope that the message is finally getting through loud and clear. The introduction of this tax in its current form places air travel at a competitive disadvantage. It is bad for Shannon Airport and it is bad for the Tourism Sector in this Region. Ryanair have threatened to significantly reduce their services into Shannon Airport next year while Aer Lingus announced today that this tax will cost them €30m next year.

“I await the Finance Bill with interest to see how the Minister intends to address these concerns.”

DÁIL QUESTION No 205

 

To ask the Minister for Finance if he will review the rate structure for the proposed €10 air travel tax; his plans to replace the proposal with a coastline tax; and if he will make a statement on the matter.    – Pat Breen.

 

* For WRITTEN answer on Tuesday, 11th November, 2008.

 

Ref No: 39870/08

REPLY

Minister for Finance ( Mr Lenihan) :

 

I announced in Budget 2009 that an Air Travel Tax will come into force in respect of passengers departing from Irish airports on and from 30 March 2009. A general rate of €10 per passenger will apply, with a lower rate of €2 for shorter journeys. This measure is estimated to yield €95 million in 2009 and €150 million in a full year. This is not an insignificant amount of money and given the current fiscal environment, I do not wish to see this level of anticipated revenue reduced. However, I am aware of a number of issues that were raised subsequent to my Budget announcement and these will be borne in mind in the context of the Finance Bill.