Tax Code

Dáil Éireann Debate, Wednesday - 29 September 2010

Wednesday, 29 September 2010

Ceisteanna (441)

Thomas P. Broughan

Ceist:

531 Deputy Thomas P. Broughan asked the Minister for Finance when he last reviewed the operation of the €10 air travel tax with the Department of Transport and the Department for Tourism, Culture and Sport; his views on whether the travel tax is contributing to the haemorrhaging of passenger numbers through airports here with a knock-on effect on the travel and tourism industries; if he will put the cost benefit analysis for the travel tax in the Oireachtas Library; and if he will make a statement on the matter. [26829/10]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

As a matter of policy, taxation measures are reviewed on a regular basis and particularly as part of the Budgetary process. While this issue is primarily a tax matter, I continue to take soundings from Ministers with responsibility for both tourism and transport. 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. I have stated before that the impact of the tax on passenger numbers is being overstated.

As the Deputy will be aware, Germany has announced plans to introduce an air travel tax with effect from 1 January 2011.