Toll increases on hold for now

NRA confirms tolls will not be raised for 2014, but private operators could pass on any VAT rises.

What's the news?
It's mixed news actually, regarding road tolls. With the Budget coming up next week, the good news is that tolls administered by the National Roads Authority (NRA) won't be going up because there hasn't been a significant enough rise in inflation. According to the Irish Times, inflation has only gone up by around 0.2 per cent this year, which isn't enough to trigger the index-linked raising of the tolls. That will come as something of a relief for hard-pressed commuters, following the 10c rise that 2012's inflation figures caused.

The news is not all good though, as there is no compulsion on privately-run toll roads to keep their charges in check. The lack of a rise from the NRA will put pressure on the private operators not to put their prices up, but if VAT is increased in the Budget, then they will have little choice but to increase their charges.

Interestingly, there's a dispute on the boil between the NRA and Revenue over the imposition of VAT on the tolls on the M50 motorway and the Dublin Port Tunnel. The NRA has been told that it must start imposing VAT on both of those charges, but it is so far resisting doing so. Theoretically, a European court ruling means that the lack of VAT charged on these tolls is unfair to potentially rival private toll operators, but the NRA counters that as there is no rival private motorway in either location, that the ruling is invalid. The VAT amount is estimated at €1.5 million per month.

Anything else?
Tolls for heavy goods vehicles will be lifted on the M1, M3 and M6 motorways, and on the Limerick Tunnel, during November. It's part of a scheme by the Department Of Transport to try and get big trucks off of small roads and back on to the motorways. The State will cover the expected cost of €2 million for the free tolls.

Published on: October 11, 2013