Calls for Scrap of Irish Travel Tax

August 24, 2009 Taxation in EUTaxation in Ireland  No comments

Irish airline Ryanair has called for the scrapping of the Government’s €10 travel tax.

Ryanair has called for the abolishment of the Irish government’s €10 travel tax. According to Ryanair statements, passenger throughput at Dublin Airport fell by 10% in the month of July, equating to a 215,000 passenger drop in one moth. Throughout May the incoming passenger numbers fell by 18%, or approximately 150,000 visitors. Ryanair places blame for these repeated falls on the government’s travel tax.

Stephen MacNamara, Communications Chief for Ryanair, stated in a news release “Ireland’s most important market declined by 23% as UK visitors abandon Ireland due to the Irish Government’s €10 tourist tax which they are asked to pay in addition to the UK Government’s £10 Air Passenger Duty.”

Further, Ryanair emphasized an international precedent for such changes. They highlighted the recent decisions of the Belgian, Greek, Dutch and Spanish governments to significantly lower their travel taxes in order to stimulate the tourism economy. According to statements made by Ryanair, if no action is taken in regards to the issue of travel taxes, Dublin Airport alone will lose over three million passengers. Two aircraft have already been removed from the active circulation of planes for Ryanair in Ireland this year.

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