Niall Collins (Limerick County, Fianna Fail)
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248. To ask the Minister for Finance his views on a scheme (details supplied); if it can be implemented here; and if he will make a statement on the matter. [7249/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Providing a sustainable, low-carbon transport system is a key priority of Government. The Programme for Government commits to 7% average annual emissions reduction to 2030; ultimately, the goal is for a zero-emission mobility system by 2050. Electrification will be key to achieving this objective in the transport sector.

Electric vehicles (EVs) are the most prominent transport mitigation measure in the Climate Action Plan, which contains an ambitious target of 945,000 EVs on our roads by 2030.

As I understand it, the proposed scheme as set out in the details provided would provide an exemption from benefit-in-kind (BIK) where an employer leases an electric vehicle on behalf of an employee.

Decisions on taxation matters are made in the context of the annual Budget process, and the Deputy will understand that I cannot give any indications of matters under consideration for Budget 2023 at this time.

The Department of Finance Tax Expenditure Guidelines, published in October 2014, set out guidelines for best practice in ex-ante and ex-post evaluation of tax expenditures and are used by my Department when considering whether or not to introduce a new tax expenditure, or in reviewing an existing measure. These guidelines provide that tax expenditures should only be used in limited circumstances of demonstrable market failure, and where a tax-based incentive is likely to be more efficient than a direct expenditure intervention.