asked the Minister for Finance the estimated cost in 1978, 1979, 1980 and 1981 of the repeal in the 1978 Budget of the 1976 provision in relation to the private use of employers' cars.
Written Answers. - Use of Employers' Cars.
221.
Section 5 of the Finance Act, 1978, repealed with effect from 6 April 1978 section 23 of the Finance Act, 1976, under which the minimum charge to income tax in respect of the benefit derived from the private use of a company-owned vehicle, by a director or employee of the company, was to be not less than the greater of (a) £300 or (b) 15 per cent of the cost of the vehicle.
The cost of repealing section 23 of the Finance Act, 1976, is estimated to have been £2 million in the year 1978 and £3.5 million in a full year.
Statistics are not compiled in such a way as to enable cost figures for later years to be given but, having regard to the increase in the number of new cars purchased in recent years many of which would be company-owned and the increased cost of such cars, it is thought that the loss of revenue would now be higher than the figures quoted.