European Court of Justice orders EC to re-investigate Ireland's travel tax

The EU's highest court has ordered the European Commission to re-open an investigation into Ireland's travel tax.

European Court of Justice orders EC to re-investigate Ireland's travel tax

The EU's highest court has ordered the European Commission to re-open an investigation into Ireland's travel tax.

The European Court of Justice has annulled a previous decision, meaning another inquiry will be held into whether the tax was a form of illegal state aid.

The case was taken by Ryanair, who claimed that internal flights run by Aer Arann and Aer Lingus were the only ones that could benefit from a lower rate of travel tax.

It complained to the European Commission, which dismissed the complaint three years ago, but now a new inquiry will have to be held.

The travel tax - which stood at €10 for most flights, but only €2 for shorter ones - was reformed in 2011 and abolished altogether in April of this year.

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