EU forces government to charge VAT on all toll routes by July 1st

Run_to_da_hills

Thanks again to all those that voted EU rule at Lisbon, :rolleyes:

Drivers to Dublin face forking out an extra 21% in toll charges on the Republic's busiest motorway after Europe ordered the Irish roads operator to charge VAT. The National Roads Authority said yesterday it has been ordered to begin adding 21% to the cost of using the Dublin Port Tunnel (DPT) and M50 toll from July 1.

It will affect up to 100,000 drivers who use the M50 daily, and a further 9,000 who use the tunnel.

People strapped for cash will now just exit before the toll booths on our interurbans to avoid paying tolls altogether.

http://www.irishtimes.com/newspaper/ireland/2010/0611/1224272269820.html

mickoneill30

Run_to_da_hills wrote: »

Thanks again to all those that voted EU rule at Lisbon, :rolleyes:

Voting No would have gotten rid of the VAT???:rolleyes:

mullingar

VAT IS already included in tolls on M4 as Im sure on most other toll roads

[url] http://www.eurolink-m4.ie/index.aspx?menu=2&context=1 [/url]

Why is the port tunnel exempt?

Edit;

Just re-read your post, this includes the M50? So for a light user €3 + 21% = €3.63 :eek:

maggy_thatcher

mullingar wrote: »

Why is the port tunnel exempt?

State-owned organizations didn't have to charge VAT. This was deemed a distortion of competition. The Irish government had two choices:

1. Remove VAT on all tolls
2. Charge VAT on state-owned tolls

It (unsurprisingly) opted for the latter.

pa990

vat is already included on m50 toll, and m8 toll's and m1 toll's.
Dunno about the rest

mullingar

pa990 wrote: »

vat is already included on m50 toll, and m8 toll's and m1 toll's.
Dunno about the rest

According to the independent, M50 is currently VAT free:

http://www.independent.ie/national-news/motorists-face-21pc-vat-hike-in-m50-and-port-tunnel-tolls-2216701.html

DRIVERS face forking out a massive additional 21pc in toll charges on the country's busiest motorway after Europe ordered the state roads operator to charge VAT.

The National Roads Authority (NRA) said yesterday it has been ordered to begin adding 21pc to the cost of using the Dublin Port Tunnel (DPT) and M50 toll from July 1.

It will affect up to 100,000 motorists who use the M50 every day, and a further 9,000 who use the tunnel.

The move comes after the European Court of Justice ruled last July that a VAT exemption on services provided by Irish public authorities gave them an unfair advantage over private operators who were obliged to charge the tax.

It meant local authorities would have to charge VAT on services including library internet access, photocopying, refuse collection and car parking.

But despite there not being a rival, privately-operated motorway serving the capital, meaning no competition issues arise, the Revenue Commissioners have ordered the NRA to impose VAT on the M50 and Dublin Port Tunnel.

The NRA said it would pay the VAT pending the outcome of an appeal. The monthly bill will be €1.4m. If it loses the appeal, the charge will be levied.

Motorists are charged different rates on the M50, with cheaper tolls applying to those who have a tolling account.

The imposition of VAT means that car-users who now pay €2, €2.50 or €3 per trip will have to pay increases between 42c and 63c. The highest charges are incurred by heavy goods vehicles (HGVs) which pay €5 or €6, with increases of €1.05 to €1.26.

Some €80m a year is generated in tolls, meaning an extra €16.8m will be levied on hard-pressed motorists.

In the Dublin Port Tunnel, cars pay between €3 and €10 per trip, depending on the time of day. The rates will increase to €3.60 and €12.10. Trucks travel free.

The NRA was notified of this latest decision on May 27.

"The VAT question needs to be clarified because the impact to the daily user would be significant," said spokesman Sean O'Neill.

"The NRA will be requesting that the appeal commissioners to review this decision.

"Pending that review, the toll amounts on the M50 and the tunnel will remain at current levels. Should the commissioners confirm that VAT has to be levied on M50 and DPT tolls, the NRA will then review the need to adjust the toll charges to reflect the VAT increase," he added.

The length of time it takes to decide an appeal depends on the complexity of the case.

Interest is applicable at a rate of 0.0219pc per day, or part of day, during which the tax remains unpaid.

kayos

Well they could drop the toll price to end up with the same price when the VAT is added on. Oh hold on that sounds like something decent to do for the tax payer, so there goes that idea.

maggy_thatcher

pa990 wrote: »

vat is already included on m50 toll, and m8 toll's and m1 toll's.
Dunno about the rest

It's not (presently) included on the M50. It used to be until the government bought the bridge and charged its own toll.

amacachi

kayos wrote: »

Well they could drop the toll price to end up with the same price when the VAT is added on. Oh hold on that sounds like something decent to do for the tax payer, so there goes that idea.

Also if they did that then there'd be one less thing for certain people giving out about the big bad EU, a bait which some people can't seem to resist.

jayok

Wait a second, this is a double whammy.

The toll used to be £0.80, then we were told they have to charge VAT, so it went to £1.00. The euro arrived and it went to €1.30 (not €1.27) as this was more convenient.

It was €1.30 for ages (which included VAT) and then I think it went to €1.50 or something (which included VAT). The government took it over, but maintained the level at €1.50, but this was excluding VAT. I remember this as truckers /companies were complaining the that cost has gone up by 21% as they couldn't claim this back.

Now, at €2 per toll, we are being told they have to add VAT again!! FFS, the new toll rate for Eazy Pass will be €2.42 or we'll round it to €2.50!!

So, from 2003, it's gone from €1.30 to €2.50. That's nearly a 100% increase in toll charges.

This corrupt, inefficient, overpriced, fscking country....:mad:

amacachi

jayok wrote: »

Wait a second, this is a double whammy.

The toll used to be £0.80, then we were told they have to charge VAT, so it went to £1.00. The euro arrived and it went to €1.30 (not €1.27) as this was more convenient.

It was €1.30 for ages (which included VAT) and then I think it went to €1.50 or something (which included VAT). The government took it over, but maintained the level at €1.50, but this was excluding VAT. I remember this as truckers /companies were complaining the that cost has gone up by 21% as they couldn't claim this back.

Now, at €2 per toll, we are being told they have to add VAT again!! FFS, the new toll rate for Eazy Pass will be €2.42 or we'll round it to €2.50!!

So, from 2003, it's gone from €1.30 to €2.50. That's nearly a 100% increase in toll charges.

This corrupt, inefficient, overpriced, fscking country....:mad:

You've just battered the head of the nail right there. Nothing to do with the EU, everything to do with our government trying to be cheeky.

mullingar

Yeah, probably justify the 100% toll increase by calling it a congestion charge somewhere

bop1977

Just heard on the radio that the government are going to appeal this in Europe, meanwhile the NRA will foot the tax bill. So there won't be an increase straight away.

opinion guy

bop1977 wrote: »

Just heard on the radio that the government are going to appeal this in Europe, meanwhile the NRA will foot the tax bill. So there won't be an increase straight away.

Um why ?
This makes no sense. Just accept the rule change reduce prices by the right amount to keep tolls the same - it doesn't make any differecne since the money goes to the government anyway

pajo1981

Lisbon? WTF?

They should just take the hit. It ends up in a different gov. department, so what?