VAT on M50 toll would add insult to injury, says AA
The Automobile Association (AA) has today criticised plans to impose a 21% VAT rate to State-owned tolls at the West-Link Toll Bridge on the M50 and the Dublin Port Tunnel with effect from July 1.
According to the AA, the tax would mean that the toll for cars would raise form its current rate of €2.00, €2.50 & €3.00 (depending on whether you have a tag/account) up to €2.42, €3.02 & €3.63 respectively.
Those prices will not apply from this week because – for now – the NRA is absorbing the tax within the toll and is not passing it on to road users.
“It is absolutely critical that motorists should not be faced with yet another price hike on the M50” said director of policy Conor Faughnan.
“We had VAT on the West Link before when it was in private hands. When the bridge came into State ownership in 2008, the VAT was not removed. They simply took the existing VAT-inclusive price as the new State-controlled toll. It would be an act of utter bad faith to now re-apply VAT on top of that figure.”
The AA is now calling on the NRA and the Government to make a commitment that these VAT charges will never be passed on to motorists.
“The NRA is appealing the Revenue Commissioners’ decision, and good luck to them.” said Faughnan.
“However it does not make a blind bit of difference to motorists which arm of the state is picking their pocket. The effect is the same. The state cannot add VAT, change the description to a state charge and then add VAT again.”
