Róisín Shortall (Dublin North West, Labour)
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Question 113: To ask the Minister for Finance the number of persons availing of the tax-saver commuter ticket schemes in each of the years since its inception; the corresponding number of tax-payers in each of these years; the gross cost of the scheme to the Exchequer in each of those years; and the breakdown by ticket type claimed for each of those years (details supplied). [4919/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the position on travel tickets is that where an employer provides an employee with an annual or monthly bus or train pass, the cost of such a pass is not taxable. In addition, where an employee foregoes salary, and such salary foregone is used by the employee to purchase an annual or monthly bus or train pass, then the salary foregone is not taxable. Both of these instances are subject to certain conditions.

I am further advised by the Revenue Commissioners that employees are not required to include in their tax returns income arising from the provision of travel passes by their employers. In the case of employers the expense of travel passes to employees is allowable as a deduction in arriving at profits for tax purposes. However, the employer's tax return of income does not contain an entry in respect of this item and the employer's profit and loss account does not normally distinguish between this particular expense and other employment-related expenses. In these circumstances it is not possible to provide a totally reliable estimate of numbers or costs involved at present.

However, information available to my Department from Dublin Bus shows the following breakdown of tax-saver tickets issued by that company for the years 1999 to 2005:

On the basis of ticket sale receipt figures supplied by Dublin Bus and assuming an average marginal tax rate of 30% plus the value of PRSI-health levies foregone, the cost in revenue foregone is estimated at €1.1 million in 2001, €4.2 million in 2002, €6.1 million in 2003, €7 million in 2004 and €7.1 million for 2005.

The other main public transport operators are being contacted with a view to assembling more comprehensive information. When this information is to hand I will forward it to the Deputy.

The total numbers of income earners on PAYE tax records and the corresponding numbers who were effectively liable to income tax for the tax years 1999/2000 to 2005 are as follows.

The numbers of income earners for 2003 and later years are based on actual data for 2002 projected forward in accordance with macroeconomic data relating to actual and expected growth in income and employment. It should be noted that a married couple who has been elected or has been deemed to have been elected for joint assessment is counted as one tax unit.