I propose to answer Questions Nos. 208 and 209 together.
The European Court of Justice has ruled that road tolls charged by private operators must be subject to VAT at the standard rate and it is proposed to give effect to this decision in the Finance Bill, which is due to be published shortly. The practical implications of this measure in relation to the adjustment of existing toll charges are under active consideration between the National Roads Authority and Dublin Corporation, as the tolling authorities concerned, and the toll operators. It is not yet possible to estimate the detailed outcome of this process.
It is not considered that traffic diversion is likely to be a significant problem or that the revenue generating capacity of future public private partnerships will be significantly affected by the imposition of VAT on road tolls.