Irish capitulate on airport tax

Dublin is to reduce its air passenger tax from €10 to €3 in a bid to support tourism, as part of the debt hit country's recent budget review. 

Ryanair boss Michael O’Leary, who campaigned vigorously against the tax, is still not happy.

“Today’s budget proves yet again that this Government has no tourism policy.  The reduction in the €10 tourist tax to €3 was forced on them by the EU Commission’s infringement proceedings,” he said.

The move is interesting with some countries, the UK and Germany being typical, either increasing or introducing taxes, whilst others, led by Holland, are abandoning such schemes.

The reduced rate will apply on a temporary basis, from March 2011 until the end of the year.  Brian Lenihan, the Irish Government’s Minister for Finance, said the tax will be reviewed next year and increased unless the airlines give “an appropriate response.” www.revenue.ie

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