12 Sep 2016
Posted by Barry Aldworth Following a ruling by the European Court of Justice which could increase prices at the M50 and Dublin Port Tunnel tolls by up to 60c per journey, the AA is urging that motorists cannot be expected to bear the brunt of additional charges.
The decision from the European Court of Justice follows on from an ongoing disagreement between Transport Infrastructure Ireland (TII) and the Revenue Commissioners. VAT is charged by privately owned toll operators but is not charged by the State at the facilities that it controls, i.e. the M50 and Port Tunnel, as well as the Tom Clarke Bridge which is operated by Dublin City Council.
Revenue felt this was wrong on the grounds that it gives the state an unfair advantage over the private sector, and the European Court of Justice supported this view. Previously, TII had been absorbing the cost of VAT for the last number of years.
The AA believes that this ruling should not result in additional charges for motorists using state owned tolls. TII is an organ of the state and, as a result, it makes no financial difference to the exchequer whether they collect VAT & subsequently give it back by way of an equivalent increase in the roads budget or whether they do without VAT and let TII keep the money.
Whatever resolution is reached, it should be invisible to all motorists and should have no effect on the end-user charge. The potential addition of VAT to toll prices at state-owned facilities would only place a further, unnecessary burden on motorists already struggling with increasing motor insurance premiums. In attempts to address the latter issue, the AA has highlighted several insurance reforms which could be made by the Government and insurers to minimise the crisis.
