Ryanair has condemned what it called the 'half measure' by the Government to cut the air travel tax from €10 to €3. The airline said the move showed that the Government still has no tourism policy and Irish tourism continues to be strangled.
'The reduction in the €10 tourist tax was forced on them by the EU Commission's infringement proceedings,' said Ryanair chief executive Michael O'Leary.
'It was regrettable that this Government didn't have the vision to go the while way and scrap this stupid tourist tax altogether, when at this new €3 level it will bring in less than €35m a year,' he added.
However, the Irish Hotels Federation says the move to reduce the air travel tax and the no change to VAT for 2011 will boost the Irish tourism sector.
The IHF says that the reduction in the air travel tax will inject some much needed growth into the tourism sector while the retention of the lower 13.5% VAT rate will ensure that the tourism industry remains a viable economic driver.
But the IHF's CEO Tim Fenn condemned as 'a wasted opportunity the absence of any meaningful measures to assist small and medium sized enterprises gain access to adequate levels of appropriately priced credit'.
'Stamp duty reform long overdue'
The Irish Auctioneers and Valuers Institute has welcomed the news that the level of stamp duty will be reduced to 1% on properties valued up to €1m and 2% on sums in excess of this figure.
'The reduction in stamp duty will afford people greater opportunities to trade up and down in the market and will offer people greater mobility and improve efficiency in the use of the national housing stock,' commented Simon Ensor of the IAVI National Council.
'Stamp duty reform is long overdue and we hope it will provide an impetus to the market,' he added.
SIMI also welcomed the extension of the car scrappage scheme until the end of June.
'The continuation of the scheme for the peak buying season for next year will guarantee increased Government revenues and safeguard the increased level of employment in the sector, commented SIMI's director general Alan Nolan.
'As a direct result of scrappage we have seen an additional 3,200 jobs created this year and the industry is also engaged in a national programme aimed at recruiting an extra 150 new apprentices over the coming weeks,' he added.
