EU TO INVESTIGATE €10 DEPARTURE TAX
Issued : Tuesday 1 June, 2010
Labour Deputy Jan O’Sullivan has welcomed the announcement by the EU that the current air travel tax introduced by the Government may actually be in breach of EU law. This tax has contributed to the significant downturn in passenger numbers especially at Shannon Airport.
The revenue raised from this tax versus the loss of other revenues arising from job losses, and airlines reducing their services is sufficient justification in my view for the tax to be abolished
We need to remove obstacles that reduce our competitiveness and act as a disincentive for people to travel or visit the Mid West region. Shannon Airport has lost over 1 million passengers in the last two years and the airport is now in danger of becoming a regional rather than an international airport.
I would urge the EU commission to conclude its deliberations as quickly as possible and should the commission find against the Government this anti tourism tax must be immediately abolished.
Our EU neighbours the Dutch realised that when they introduced a similar tax in 2008 it cost the Dutch economy 1.6 Billion rather than bringing in revenues of 400 million as planned, needless to say the tax was abolished in July 2009.
Even the Government’s own consultative tourism group have strongly urged the Government to remove the tax while the chairman of Bord Failte has stated that this travel tax has cost the Irish economy over €30 million annually.
With the Icelandic ash cloud costing the economy and airlines millions in lost revenues the Government should as we enter the main summer tourist season move immediately to abolish this tax as opposed to waiting before the EU rule against us.
