Dáil Éireann Debate, Tuesday - 28 September 2021
278. Deputy Brendan Howlin asked the Minister for Finance if he plans to make adjustments in the tax saver rail ticket system to facilitate workers who are returning to the workplace on a two day or three-day work basis rather than a five-day commute; and if he will make a statement on the matter. [46022/21]
View answerSection 118(5A) of the Taxes Consolidation Act (TCA 1997) provides an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for an employee.
Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a travel pass.
Where a travel pass is purchased under the BIK scheme or through a salary sacrifice arrangement certain conditions must be met, for example:
- the cost incurred must relate to a monthly or annual bus, railway or ferry travel pass;
- the travel pass must be issued by or on behalf of one or more approved transport providers; and
- the approved transport provider must be contracted or licensed to provide the transport services covered by the travel pass.
The terms ‘monthly’ and ‘annual’ above refer to the period of time for which the travel pass is valid for use, being a period of 30/31 or 365/366 days respectively. The number of journeys or extent of travel which may be undertaken within the monthly or annual period covered by the travel pass will depend on the terms and conditions of the specific ticket purchased and the relevant transport provider.
Further details on the tax treatment applicable on the provision of a travel pass to an employee can be found on Revenue’s website.
I do not have any proposals to hand regarding a more flexible taxsaver product and, as the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
