Dáil Éireann Debate, Tuesday - 21 April 2026
272. Deputy Emer Currie asked the Tánaiste and Minister for Finance if he will consider amendments to the Tax Consolidation Acts to facilitate changes to the TaxSaver scheme, including an extension to other modes of sustainable travel, such as shared mobility, and to move from a 'travel pass' basis to more flexible digital models, in a bid to address the alarming fall-off in the number of commuters availing of TaxSaver. [21062/26]
Amharc ar fhreagraAs 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 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.
While the conditionality around the BIK exemption for the TaxSaver scheme falls under an Tánaiste's remit, as Minister for Finance, the scope and conditions of the travel passes on offer are a matter for the individual transport providers.
It will be of interest to the Deputy that in respect of the day-to-day operations of public transport, including TaxSaver ticket offerings, it is the National Transport Authority which has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under Public Service Obligation contracts.
As with all tax policy measures, the TaxSaver scheme is kept under review by Department of Finance officials. It is particularly important in considering proposals in respect of tax expenditures that the Government be mindful of the public finances and the many demands on the Exchequer. The expansion of any scheme creates a cost, and that cost must be recovered elsewhere.
However, at present, there is no specific requirement to amend the tax legislation in respect of this scheme but due consideration will be given to any proposals received as part of the pre-Budget submission process.
