Pádraig Rice
Question:159. Deputy Pádraig Rice asked the Minister for Finance if he is considering increasing the tax relief limit for e-bikes under the cycle-to-work scheme; and if he will make a statement on the matter. [5345/25]
View answerThursday, 13 February 2025
Questions (159)
Written answers
Section 118(5G) of the Taxes Consolidation Act 1997 provides for the Cycle to Work Scheme. This scheme offers an exemption from benefit-in-kind where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks.
The amount of exempted expenditure depends on the type of bicycle purchased and includes related safety equipment. Since 1 January 2023, the scheme may be applied once every four years to the first:
• €3,000 of expenditure in relation to a cargo or e-cargo bike;
• €1,500 of expenditure in relation to a pedelec or e-bike; or
• €1,250 of expenditure in relation to any other type of bike.
The Programme for Government 2025, "Securing Ireland's Future", contains a commitment to, within the lifetime of this Government, conduct a review of the Bike to Work scheme to boost take-up among all workers. The Terms of Reference of the review of the scheme will be considered in due course.
As the Deputy will appreciate, any proposals for the introduction or amendment of tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
Furthermore, it should be noted that any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.