asked the Minister for Transport and Power whether his attention has been drawn to reports of a proposal by the US Government to impose a tax on US citizen spending their holidays abroad; if so, whether he is aware that such a proposal, if implemented, would have serious implications for Shannon Airport; and whether he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - US Tax on Holidays Abroad.
13.
When the reports to which the Deputy refers first appeared, an immediate approach was made to the United States authorities through the usual diplomatic channels. It transpired that the proposal is not likely to be implemented. I regret to say, however, that the message which the President of the United States sent to Congress regarding the United States balance of payments has recommended that legislation should be passed to reduce the duty exemption on foreign purchases by United States citizens returning from abroad. While the exact scope of the proposal is not yet clear, it could reduce our earnings from American tourists, including those who visit the Duty Free Shop at Shannon Airport. Representations have also been made to the US authorities on this proposal.