Pearse Doherty (Donegal, Sinn Fein)
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Does the Minister have any concerns about the method he has used to deal with the reduction? A sum of €10,000 will be deducted from the original market value of a car. That figure is not calculated for the purpose of BIK. For example, a category B car with 40,000 km will mean a multiplier of 15.75. The BIK will be €1,572 Euro and tax at 52% will be €890. That is the saving people are making compared to what has been legislated for heretofore. That is also the increase people are facing when this measure expires. In the case of the example of the Audi, the figure is higher because the BIK multiplier is 20.

In some cases, the cliff edge has become larger. The concern is whether this will be extended again. What is the Minister's message to employers? There was a three-year lead-in period which has now been extended a bit further. An individual in category B, such as somebody with a car valued at €28,000, will now be better off to the tune of a couple of hundred euro than they were last year. Their tax liability has decreased but will increase by about €820 next year. The cliff edge has become a lot more severe for such people.