Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Section 118(5A) of the Taxes Consolidation Act 1997 exempts employees and directors from benefit-in-kind taxation where an expense has been incurred by an employer in the provision of a monthly or annual bus, train or Luas pass for the employee or director. The exemption also includes passes for travel on commuter ferry services which operate within the State on journeys which begin and end in the State. The exemption does not extend to car parking charges which are incurred as part of a combined travel pass which includes car parking charges, nor does it include ad hocparking charges such as daily charges.

The Deputy will be aware that we discussed this issue on Committee Stage. While in theory I could agree to prepare a report, as he suggests, as I said at the time, I am not at all convinced of the merits of the underlying proposal. If we were to allow individuals with a taxsaver travel pass to gain further tax relief on car parking fees, this would be an additional benefit for someone already gaining significant tax relief on his or her commuting costs. Again, as I said on Committee Stage, it would be very difficult for the Revenue Commissioners to administer such a scheme: The existing travel pass or taxsaver scheme is transparent in that the providers are listed in the legislation and the cost of the pass at the start of the year is known. On the other hand, parking facilities are provided by a multitude of providers, from multi-storey car parks to waste ground, and at various rates.

I know where the Deputy’s constituency is located and while I accept that many people may need to drive to a station or a bus stop, nonetheless I am still concerned that such a change might perhaps have the unintended effect of increasing the distance driven by commuters before they make their switch to public transport. In addition, while it is not a matter for my Department, I note the recent NTA decision to reclassify certain stations in the short hop zone and the savings this will produce for some commuters. I am sure that must be a source of great satisfaction for the Deputy and some of his constituents.

I note that there could also be difficulties in minimising any opportunity for misuse of such an extension. For example, if an annual parking fee was paid, how would the Revenue Commissioners know who was using the pass? For all of these reasons, I would be reluctant to contemplate an extension on the lines proposed by the Deputy. The existing taxsaver scheme works well and provides people with a generous incentive to use public transport. I do not think it would be practical to extend it to car parking charges for the reasons I have outlined. Therefore, I am not inclined to ask my officials to prepare a report on the matter.

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