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Irish airlines told to boost numbers or face tax, again

12-May-2011 1:05 PM

Ireland’s Finance Minister Michael Noonan threatened to keep the country’s controversial EUR3 travel tax if Ryanair and Aer Lingus fail to increase passenger numbers into Ireland (Independent.ie, 11-May-2011). Mr Noonan confirmed the tax will be removed from 01-Jul-2011 on the understanding that both airlines increase numbers into the country. He added that a review of the decision to "suspend" the tax will be conducted by the end of 2012. The abolition of the tax is expected to result in a loss to the government of EUR15 million this year, EUR90 million in 2012 and EUR105 million in 2013.