Tolls could rise for motorists
The European Court of Justice will issue a judgement on Thursday in a case which may see Vat on State-owned tolls being passed on to motorists.
Such a decision could see the cost of using the M50 and Dublin Port Tunnel increase by up to 23% for road users if they have to pay VAT on such tolls. For motorists using the Dublin Port Tunnel at peak time, it could mean paying an extra €2.30 on the existing €10 toll. The other rate of €3 would increase by 69 cent.
On the M50, motorists using a tag could be facing a 48 cent increase on the current €2.10 toll. The rate for unregistered motorists would go from €3.10 to €3.81.
A preliminary opinion issued in the case last year supports the imposition of VAT on the two tolls.
The case was referred to the ECJ by the Office of the Appeal Commissioners (now known as the Tax Appeals Commission) which asked the court to rule on the interpretation of the EU Vat directive. The ECJ case has resulted from a dispute between Revenue on one side and the NRA (now known as Transport Infrastructure Ireland) and the Department of Transport on the other.
In 2010, the NRA sought repayment of Vat it had paid on its two toll roads from Revenue arguing 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 NRA appealed against the decision.
While the case has been ongoing, the NRA has continued to pay approximately €17m each year in Vat— a charge it has absorbed from existing toll rates without passing on the cost to motorists.
