3 Day Tax Saver Ticket needed as commuting recommences – McGahon

Now that public transport is back to 100% capacity and people are returning to the office, we need to implement a 3 Day Tax Saver Ticket for bus and rail, according to Fine Gael Senator John McGahon.

Senator McGahon said: “The pandemic has really changed common perceptions around commuting to and from work, and we need to recognise that the concept of working from home is something that will be here to stay in the post Covid era. With that in mind, our commuter tickets really need to reflect what will become the new working norm. It just does not make sense that the only tax saver tickets available are monthly or annual tickets.

“I first raised the issue of 3 Day Tax Saver Tickets with the National Transport Authority in June 2020, just a few months into the pandemic, and while they were sympathetic to the idea, there was a slow start to addressing the issue. However, there has been significant progress recently and the NTA has advised me that they are continuing work on the development of a flexible ticketing product.

“As of September 2021, they have largely worked out the technical aspects and are in discussions with government departments on the legislative aspects.  The technical work is continuing, with the aim of being able to launch the product either at the end of Q1 or early Q2 2020.

“The sticking point is that Tax Saver Tickets are treated as a Benefit In Kind under current legislation. The Taxes Consolidation Act 1997, states that income tax and PRSI shall not apply for monthly or annual bus or rail tickets.

“The NTA is currently examining options for a flexible ticket which would be modelled on an annual ticket, for example a ticket that provides for 100 days of travel over a 12-month period. The question is if it would comply with the legislation or if it would require an amendment to the Act. We now need clarity on this, and if a legislative amendment is required we need to move on this as soon as possible.

“The important thing is that while the legislative aspects are being resolved, the NTA is progressing with the technical implementation of the flexi tickets, as we must keep up the momentum on this.

“People are increasingly returning to the office, and we can’t expect them to pay the prices of a monthly or annual ticket when they may only be in the office for two or three days a week”, concluded Senator McGahon.