Wednesday 7 December 2016

Travel costs to rise as EU slaps on tax

RONALD QUINLAN Exclusive

Published 26/09/2010 | 05:00

THE cost of taking a flight both within Ireland and to a range of UK cities is set to increase by €8 per ticket.

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The Sunday Independent has learned that the EU Commission issued a formal notice on March 18, informing the Government that its controversial Air Travel Tax (ATT) is being applied illegally.

According to EU law, the travel tax must be applied equally to all flights within the EU whether they are domestic flights or flights to another member state.

Since its introduction on March 24 last year, however, the Irish travel tax has been charged at two rates -- €10 on all flights above 300km and €2 on flights below that distance.

The existence of the two tax rates has led to concerns in Brussels that airlines operating flights within Ireland and to destinations within 300km of Dublin are effectively benefiting from state aid.

As a result, passengers face the prospect of a €10 levy on domestic flights, as opposed to the €2 that they have been paying up to now.

Passengers flying from Dublin to Manchester (264km), Liverpool (225km), Blackpool (214km), Cardiff (300km), Glasgow (295km), Prestwick (254km) and the Isle of Man (129km) will also find themselves having to pay the €10 levy, instead of the €2 being applied currently.

Sunday Independent

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