VAT to be applied to toll roads

VAT at its current level of 20% is to be applied to fees paid by motorists using toll roads.

The extension of VAT to toll rates is one of 74 additions being made to the budget for inclusion in this year’s Finance Bill.

The Second Secretary at the Department of Finance, Donal McNally, said that the VAT for drivers had been decided by the European Court.

He said that the court decided that arguments put forward by the European Commission were much stronger than those put forward by Ireland and other member states, and as a result VAT has to be applied.