Dáil Éireann Debate, Tuesday - 26 May 2026
474. Deputy Albert Dolan asked the Tánaiste and Minister for Finance if consideration will be given to reforming the taxsaver commuter ticket scheme to allow employees whose employers do not participate in the scheme to claim equivalent tax relief directly through Revenue; whether this could be facilitated through annual tax returns in a similar manner to medical expense claims; and if he will make a statement on the matter. [40086/26]
View answerAs the Deputy will be aware, section 118(5A) of the Taxes Consolidation Act 1997 (TCA) provides for the TaxSaver scheme. The scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for one of their employees or directors, subject to certain conditionality.
Under section 118B TCA, an employer and employee may also enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary in exchange for the benefit.
Where a travel pass is purchased, under the 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.
As the Deputy correctly refers, where an employer chooses not to take part in the scheme, relief is not available to employees (or directors). If an employer participates in the schemes, employer’s PRSI is not payable on the cost of the relevant benefit(s) according to the deduction from their employees' salary payments. This saving to employers is a key incentive for employers to make the scheme available to their employees.
As with all tax policy measures, the TaxSaver scheme is kept under review by Department of Finance officials. In considering proposals in respect of tax expenditures, the Government must be mindful of the public finances and the many demands on the Exchequer. At present, I am satisfied that the scheme operates as intended.
As the Deputy will appreciate, it is a long-standing 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.
