European Commission launches legal challenge to Irish passenger tax

European Commission launched proceedings against Ireland over use of two air travel tax rates for passengers flying within the EU (Irish Examiner, 02-Dec-2010). Ireland generally charges EUR10 per passenger, but a lower rate of EUR2 applies for departures from Irish airports where the destination is 300km or less from Dublin Airport. The legal case is reportedly centred on whether Irish passengers are receiving favourable treatment by paying the lower of the two rates.