Clune welcomes EU court ruling which saves Irish motorists 23% increase in tolls

19 January 2017
By David O’Sullivan
david@TheCork.ie

Ireland South MEP Deirdre Clune (Fine Gael)
  • Transport Infrastructure Ireland now have 19m more to invest in our roads annually as well as an additional 60-70 million refund from Revenue
  • Clune calls for that money to be put directly into upgrading our road network

Ireland South MEP and member of the EU Transport Committee Deirdre Clune has welcomed a ruling by the European Court of Justice this morning in favour of the Irish National Roads Authority (Now Transport Infrastructure Ireland) which means that motorists using the M50, Westlink crossing and Dublin Port Tunnel will not see VAT added to the existing price of their tolls.

The case was referred to the EU courts by the Office of the Appeal Commissioners which asked the court to rule on the interpretation of the EU Vat directive. The case centres on a dispute between the Irish Revenue Commissioners and Transport Infrastructure Ireland and the Department of Transport. In 2010, Transport Infrastructure Ireland sought repayment of VAT it had paid on its two toll roads from the Revenue Commissioners and claimed that under the EU Vat directive it was a public body and not liable for the tax. When Revenue refused to refund the tax, the TII appealed the decision.

Clune welcomed the outcome of the case saying it provided clarity and certainty for motorists using roads like the M50,

“This will mean that we will not see increase in tolls on the M50, Westlink and Port Tunnel due to the imposition of VAT rates. For motorists using the Dublin Port Tunnel at peak time, this could have meant an increase in tolls of €2.30 on the existing €10 toll and an increase of 69 cent on the M50 tolls. The TII have now saved 17m euro annually in VAT payments and should receive a refund of an estimated 60-70m euro from Revenue for VAT that has already been paid, following on from this case. I would expect that this money can now be invested in road infrastructure throughout Ireland which is badly needed.

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