Emer Currie (Dublin West, Fine Gael)
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123. To ask the Minister for Finance if he will conduct a review of taxsaver commuter schemes in order to enhance flexibility and uptake by commuters in support of the Government’s climate action targets; and if he will make a statement on the matter. [28094/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 118(5A) of the Taxes Consolidation Act 1997 (TCA) provides for an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for one of their employees or directors. This is commonly known as the TaxSaver scheme.

Under section 118B TCA, an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a BIK, such as the aforementioned travel pass.

Where a travel pass is purchased under the TaxSaver scheme or through a salary sacrifice arrangement certain conditions must be met, for example:

• the cost incurred must relate to a monthly or annual bus, railway or ferry travel pass;
• the travel pass must be issued by or on behalf of one or more approved transport providers; and
• the approved transport provider must be contracted or licensed to provide the transport services covered by the travel pass.