Vol. 508 No. 3
194 Mr. G. Mitchell asked the Minister for Finance if his attention has been drawn to proposals within RTE to consider a bicycle mileage allowance for employees who use this mode of transport; if he will provide by regulation or law for this allowance to be tax free in view of the chronic traffic congestion which exists in the hope that this pilot scheme may be followed by other employers; and if he will make a statement on the matter. [19059/99]
I understand that the question relates to a claim within RTE for a bicycle mileage allowance for employees using bicycles in the course of their work. The Revenue Commissioners have informed me that where an employee uses a private bicycle for business purposes in the course of his-her duties a flat-rate mileage allowance can be paid without deduction of tax. Such payment by an employer is regarded as being no more than a reimbursement of allowable expenses. The law provides that employees' expenses qualify for deduction only where they are incurred "wholly, exclusively and necessarily" in performing the duties of the employment. Expenses which are incurred by employees travelling to and from the place of employment are not allowable for tax purposes.
The Deputy will appreciate that any proposal for new or enhanced tax measures can only be considered in a budgetary context.
