asked the Minister for Finance if reports that the EC are attempting to apply a 10 per cent VAT rate to air fares are true; and if so, the action, if any, he is taking to oppose the move.
Written Answers. - VAT on Air Fares.
56.
I understand that the European Commission is currently considering the question of harmonising the tax treatment of passenger transport, including air travel, across the Community. Until these proposals are formally presented to the Council of Ministers and their contents become known I am not in a position to comment as to Ireland's attitude to them. Suggestions that the proposals will result in the application of a 10 per cent VAT rate to air fares is, at this stage, purely speculative.