Lenihan Grants Tax Exemption For 'Small' Airports

by Robert Lee, Tax-News.com, London

27 February 2009

The Irish Minister for Finance Brian Lenihan has announced that he intends to bring forward legislation to exempt from Air Travel Tax (with effect from the commencement date of the tax, March 30, 2009) those airports that had fewer than 50,000 departing passengers in the previous calendar year. Currently, the exemption threshold for airports included in the Air Travel Tax is 10,000 departing passengers in the previous year.

Making the announcement the minister said:

“During the Committee Stage of the Finance (No. 2) Bill 2008, and since, concerns have been raised regarding the impact the air travel tax could have on small peripheral airports and their ability to develop new routes. The importance of such airports to their local areas has also been stressed. I indicated that I would take the matter into account and reflect on it.”

“Having further considered the matter I have decided that flights departing from the smaller airports, which under the existing legislation would be subject to the air travel tax, should be excluded from the air travel tax. This can be best achieved by increasing the current exemption threshold for airports of 10,000 departing passengers in the previous calendar year to 50,000.”

“It is desirable that flights departing those airports be exempted from the start of the air travel tax. Consequently I have asked the Revenue Commissioners, and they have agreed, to apply the intended revised 50,000 departing passenger exemption threshold pending the necessary legislative change being enacted,” concluded Lenihan.

Based on passenger data the airports that will benefit from this increased exemption threshold are Donegal Airport, Carrickfin, Co. Donegal, and Sligo Airport, Strandhill, Co. Sligo.

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