Dáil Éireann Debate, Tuesday - 7 October 2025
125. Deputy Emer Currie asked the Minister for Finance to consider making M50 toll payments tax deductible for commuters who rely on the motorway for their daily commute; and if he will make a statement on the matter. [53029/25]
View answerWhile I appreciate that some people are using cars to travel long distances to their principal place of employment, ultimately it is a matter for individuals to choose the transport option that works best for them, taking into account certain tax incentives which are available.
For example, in order to encourage the uptake of more sustainable and environmentally friendly transport options, persons commuting to work can already avail of the TaxSaver scheme in respect of public transport; and the cycle to work scheme.
Furthermore, employees may also claim a tax deduction in respect of:
(a) the cost of travelling expenses necessarily incurred in the performance of the duties of their employment or office; and
(b) the cost of other expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment.
However, these deductions do not ordinarily include the cost of travelling to and from a principal place of work.
In line with best practice, and as with all proposals for the introduction of new tax measures or the amendment of existing tax reliefs, the proposal should be assessed in accordance with the Department of Finance Tax Expenditure Guidelines. The guidelines make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
As the Deputy will appreciate, 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. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.
I have no plans, at present, to introduce the measure along the lines proposed by the Deputy.
