Brian Lenihan
Ceist:74 Deputy Brian Lenihan asked the Minister for Finance the cost to the Exchequer of abolishing the €3 travel tax; and if he will make a statement on the matter. [8789/11]
Amharc ar fhreagraWednesday, 20 April 2011
Ceisteanna (61)
Freagraí scríofa
The air travel tax yielded €105m in 2010. Budget 2011 introduced a single air travel tax rate of €3 with effect from 1 March on a temporary basis, replacing the €2 and €10 distance related rates, in conjunction with a DAA incentive scheme. This reduction is estimated to cost the Exchequer €56m in tax this year. The Programme for Government includes a commitment to abolish the €3 travel tax subject to a deal being agreed with airlines to re-open closed routes and bring more tourists into Ireland. This measure, if implemented with effect from 1 July 2011, will cost €15m in 2011, €91m in 2012, €105m in 2013 and thereafter. These costs reflect the fact that the Budget 2011 reduction in the rate to €3 was on a temporary basis, i.e. the costs provided reflect the move from the full rate of €10.