M50 Taking Its Toll On Small Businesses

The Small Firms Association (SFA) has accused the Government and the National Roads Authority of ripping off businesses with its new tolling procedures on the M50.

The association said there has been an increased cost to business of 21% since the NRA took charge on 1st August.

The association says companies are being hit with a de-facto increase in tolls since the NRA took over responsibility for operating the system from National Toll Roads.

SFA Chairman, Pat Crotty: "As the NRA, who have assumed operating responsibility for M50 tolls are a Government body, they do not charge VAT; however they are keeping the charges at the same level, so the previous VAT content of 21% is now income."

Mr Crotty went on to say that between 25-30,000 of the vehicles using the M50 toll bridge each day are fleet or company vehicles, and any VAT registered company can no longer reclaim 21% VAT back on M50 tolls paid.

"This in effect is a 21% rise in cost to business – and that's only for account holders," he claimed.

He added: "Small businesses are struggling to maintain sales and preserve employment. Inflation is a threat to wage negotiations and to our international competitiveness.

"The Government and State bodies cannot talk out both sides of their mouths and preach restraint to others while they casually and covertly hike their take by 21%."

(DW)