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Tax Code

Dáil Éireann Debate, Wednesday - 10 November 2010

Wednesday, 10 November 2010

Questions (52)

Joe Costello

Question:

86 Deputy Joe Costello asked the Minister for Finance the purpose of the €10 air travel tax; the amount of money collected since the tax was initiated; if he has considered a cost benefit analysis of the tax; his plans to discontinue the tax; and if he will make a statement on the matter. [35230/10]

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Written answers

I am informed by the Revenue Commissioners that the yield from the air travel tax for the nine months it was in place in 2009 was €84.4 million and that the yield to date in 2010 is €88.2 million — total yield €172.6 million.

The air travel tax was one of a number of Budgetary measures introduced that was necessary in the context of an overall response to the fiscal challenges we face and represents a genuine effort to broaden the tax base in a fair and equitable manner. The Deputy may wish to note that both Germany and Austria have announced plans to introduce an air travel tax with effect from 1 January 2011.

I have stated before that the impact of the tax on passenger numbers is being overstated. However, as a matter of policy, taxation measures are reviewed on a regular basis and particularly as part of the Budgetary process.

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