Joanna Tuffy (Dublin Mid West, Labour)
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Question 137: To ask the Tánaiste and Minister for Finance the number of persons who have successfully applied for the tax saver commuter tickets in each year from 2002 to 2007; the estimated tax relief given through this measure each year over the same period; and if he will make a statement on the matter. [2334/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the position in relation to 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 of costs involved at present.

The numbers of Travel Passes provided under the scheme have increased from 26,616 in 2002 to some 39,549 in 2005. In a previous Parliamentary Question, based on ticket sale receipt figures supplied by the main public transport providers, I estimated the cost in tax forgone in the years 2002, 2003, 2004 and 2005 as €4.4m, €6.6m, €7.7m and €9.7m respectively. These figures assumed an average marginal tax rate of 30% plus the values of PRSI/Health levies forgone.

I do not have ticket sale receipt figures for 2006 and 2007 at this time. The main public transport operators are being contacted in this regard and when this information is to hand I will forward it to the Deputy.