John Lahart (Dublin South West, Fianna Fail)
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321.To ask the Minister for Finance further to Parliamentary Question No. 68 of 10 July 2024, the estimated available gains to the Exchequer from the schemes (details supplied); and if he will make a statement on the matter. [31649/24]

Jack Chambers (Dublin West, Fianna Fail)
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As the Deputy will be aware, Section 118(5G) of the Taxes Consolidation Act 1997 (TCA) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks.

One of three thresholds applies to the amount of exempted expenditure. The applicable threshold depends on the type of bicycle purchased and includes related safety equipment. Since 1 January 2023, the Cycle to Work scheme applies to the first:

• €3,000 of expenditure in relation to a cargo or e-cargo bike;
• €1,500 of expenditure in relation to a pedelec or e-bike; or
• €1,250 of expenditure in relation to any other type of bike.

The Budget 2022 Tax Expenditure Report prepared by my Department estimated the cost of the scheme for 2020 at €4.5 million and notes that this figure is an estimate as separate returns are not required under the scheme. This estimate took account of the changes made to the scheme by Section 9 of the Financial Provision (Covid-19)(No. 2) Act 2020. This increased the allowable expenditure from €1,000 to €1,500 in respect of e-bikes and €1,250 in respect of bicycles and allowed the purchase of a new bicycle every 4 years instead of 5. The estimated costs for 2021 and 2022 were €5.5 million, respectively, with the full year impact of the changes.

Estimated costs for the scheme for 2023 will be provided in the Tax Expenditure Report for Budget 2025, which will be published later this year, will include estimates for 2023. An additional cost is anticipated on foot of an extension of the exemption limit of up to €3,000 in respect of cargo bikes which was introduced in Finance Act 2022.

Finally, the Deputy may also be aware that the Department of Transport published an examination of the scheme in November 2021 as part of the Spending Review series.