Menu
03/08/2011
Republic's €3 Air Tax Remains In Place
The Irish Republic's government has decided to retain their 'flight travel levy' pending a further review next spring.
However, budget airline Ryanair has taken exception to the move and has rejected claims that it was not committed to bringing in additional passengers when the tax is abolished.
As part of the Jobs Initiative, it was originally announced that the €3 'Travel Tax' would be suspended subject to a deal being reached with airlines to re-instate cancelled routes and restore lost capacity.
Now, in considering alternative proposals, the Dublin Minister for Transport, Leo Varadkar, made clear that the objective of the initiative was to increase the number of tourists travelling to Ireland; not to increase the number of Irish people using the State's airports to travel overseas.
Minister Varadkar stressed that he remains open to discussions with the airlines and the option remains to suspend the tax next year should there be progress in these discussions.
In the meantime, he said a significant proportion of the revenues taken in from the €3 travel tax will be used to support inbound tourism.
This support will see a fund of €8.5m being used for co-operative marketing with airlines, airports, ferry companies and tour operators on inbound routes into Ireland with particular focus on the UK regions, the United States, Germany, France and the Benelux countries.
Minister Varadkar said: "I am disappointed that it was not possible to come to an agreement with the airlines. I could not agree to foregoing significant revenues in taxes without a solid commitment from the airlines on the restoration of key in-bound routes and capacity.
"While the airlines did welcome the initiative some of the airlines were not in a position to make commitments on increased capacity due to the uncertain economic situation. This is entirely understandable."
Minister Varadkar continued: "In addition, the new routes offered were predominantly to Mediterranean hotspots which would actually have taken many more people out of the country than they would have brought in. However, I remain open to discussions with the airlines and the Government will review the travel tax again in spring 2012."
Minister Varadkar concluded: "In the meantime, Tourism Ireland will lead the marketing campaign to promote inbound travel into Ireland in co-operation with airlines, ferry companies, tour operators and airports.
"This could take the form of advertising or promotions. Airlines, ferry companies, tour operators and airports participating in the programme will be expected to make a contribution to the cost thus leveraging a final investment in excess of the Government contribution," he said.
(BMcN/BMcC)
However, budget airline Ryanair has taken exception to the move and has rejected claims that it was not committed to bringing in additional passengers when the tax is abolished.
As part of the Jobs Initiative, it was originally announced that the €3 'Travel Tax' would be suspended subject to a deal being reached with airlines to re-instate cancelled routes and restore lost capacity.
Now, in considering alternative proposals, the Dublin Minister for Transport, Leo Varadkar, made clear that the objective of the initiative was to increase the number of tourists travelling to Ireland; not to increase the number of Irish people using the State's airports to travel overseas.
Minister Varadkar stressed that he remains open to discussions with the airlines and the option remains to suspend the tax next year should there be progress in these discussions.
In the meantime, he said a significant proportion of the revenues taken in from the €3 travel tax will be used to support inbound tourism.
This support will see a fund of €8.5m being used for co-operative marketing with airlines, airports, ferry companies and tour operators on inbound routes into Ireland with particular focus on the UK regions, the United States, Germany, France and the Benelux countries.
Minister Varadkar said: "I am disappointed that it was not possible to come to an agreement with the airlines. I could not agree to foregoing significant revenues in taxes without a solid commitment from the airlines on the restoration of key in-bound routes and capacity.
"While the airlines did welcome the initiative some of the airlines were not in a position to make commitments on increased capacity due to the uncertain economic situation. This is entirely understandable."
Minister Varadkar continued: "In addition, the new routes offered were predominantly to Mediterranean hotspots which would actually have taken many more people out of the country than they would have brought in. However, I remain open to discussions with the airlines and the Government will review the travel tax again in spring 2012."
Minister Varadkar concluded: "In the meantime, Tourism Ireland will lead the marketing campaign to promote inbound travel into Ireland in co-operation with airlines, ferry companies, tour operators and airports.
"This could take the form of advertising or promotions. Airlines, ferry companies, tour operators and airports participating in the programme will be expected to make a contribution to the cost thus leveraging a final investment in excess of the Government contribution," he said.
(BMcN/BMcC)
Related Northern Ireland News Stories
Click here for the latest headlines.
24 October 2024
100 Days Left To File Your Self Assessment Tax Return
The clock is ticking for taxpayers who file Self Assessments. HM Revenue and Customs (HMRC) is reminding everyone that they have just 100 days left to submit their return and settle any tax owed before the January 31st deadline. For those who haven't started yet, HMRC offers a wealth of information and guidance on GOV.
100 Days Left To File Your Self Assessment Tax Return
The clock is ticking for taxpayers who file Self Assessments. HM Revenue and Customs (HMRC) is reminding everyone that they have just 100 days left to submit their return and settle any tax owed before the January 31st deadline. For those who haven't started yet, HMRC offers a wealth of information and guidance on GOV.
23 January 2024
HMRC Issues Self Assessment 31 January Deadline Reminder
HM Revenue and Customs (HMRC) has urged the 3.8 million people yet to file their Self Assessment tax return are urged to "act now or risk facing a £100 penalty". HM Revenue and Customs (HMRC) is expecting more than 12.1 million tax returns to be filed for the 2022 to 2023 tax year along with any payment that is owed. To date more than 8.
HMRC Issues Self Assessment 31 January Deadline Reminder
HM Revenue and Customs (HMRC) has urged the 3.8 million people yet to file their Self Assessment tax return are urged to "act now or risk facing a £100 penalty". HM Revenue and Customs (HMRC) is expecting more than 12.1 million tax returns to be filed for the 2022 to 2023 tax year along with any payment that is owed. To date more than 8.
20 October 2009
High-Flying Airline Re-Takes Top Award
For the eighteenth year in succession, the airline bmi has won the prestigious 'Best UK Domestic Airline' award at the Northern Ireland Travel and Tourism Awards.
High-Flying Airline Re-Takes Top Award
For the eighteenth year in succession, the airline bmi has won the prestigious 'Best UK Domestic Airline' award at the Northern Ireland Travel and Tourism Awards.
11 June 2003
Government targets car tax evaders
Motorists throughout Northern Ireland who do not license their vehicles will be targeted in a new campaign to recover millions of pounds lost each year in Vehicle Excise Duty (VED) evasion.
Government targets car tax evaders
Motorists throughout Northern Ireland who do not license their vehicles will be targeted in a new campaign to recover millions of pounds lost each year in Vehicle Excise Duty (VED) evasion.
25 November 2024
Other News In Brief
DfC Launch Public Consultation On Gender Pay Gap A consultation on proposed changes to Section 19 of the Employment Act (Northern Ireland) relating to the requirements for employers to publish information on the pay of male and female employees has been launched by the Department for Communities.
Other News In Brief
DfC Launch Public Consultation On Gender Pay Gap A consultation on proposed changes to Section 19 of the Employment Act (Northern Ireland) relating to the requirements for employers to publish information on the pay of male and female employees has been launched by the Department for Communities.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
