AS THE price of a litre of petrol heads closer to €2, record numbers are availing of the Taxsaver scheme, which offers discounted commuter fares on public transport.
In 2011 the number of companies participating in the Taxsaver scheme topped 2,500 for the first time, covering some 35,000 employees.
However CIÉ, which promotes the scheme across Iarnród Éireann, Dublin Bus and Bus Éireann, says numbers are likely to be up again this year, with considerable scope for further growth as rising vehicle and fuel taxes make the benefits of commuting more significant.
Under the Taxsaver scheme, full tax relief of up to 52 per cent is available for participants. For an employee on a short-hop Dart ticket in Dublin, this means 10 journeys – a typical weekly ticket – can be had for less than €10, which works out at less than €2 a day, or less then €1 for each journey.
On longer commutes such as a trip from Drogheda to Dublin, a journey of 52km, the net cost is as low as €2.11 for each journey with an annual rail Taxsaver ticket.
Employers can save up to 10.75 per cent on PRSI through participation in taxsaver schemes. Jane Cregan of Iarnród Éireann says the rising cost of fuel means such schemes “make sense” .
Taxsaver is most popular in Dublin and down the east coast. A pilot scheme targeted on Limerick was also successful, while the new commuter rail services around Cork offer scope for expansion. Iarnród Éireann is expanding services into Galway city.
Taxsaver customers can also use their annual ticket as a discount card for Intercity journeys, with up to 30 per cent off intercity travel for Taxsavers.
Minister for Transport Leo Varadkar has said he does not intend to ask Government to reduce the Vat rate on fuel, in the light of the additional tax windfall created by rising fuel prices.
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