426. Deputy Emer Currie asked the Tánaiste and Minister for Finance for a further update on any consideration of discussions between his Department and the Department of Transport regarding a review of the TaxSaver scheme to cover further forms of sustainable travel; and if he will consider commissioning a policy review of the scheme. [65561/26]

As the Deputy will know, the TaxSaver scheme provides for an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for one of their employees or directors, subject to certain conditionality. An employer and employee may also enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary in exchange for the benefit.

It should be noted that the scope and conditions of the travel passes on offer under the scheme are a matter for individual transport providers. Furthermore, in respect of the day-to-day operations of public transport, including TaxSaver ticket offerings, it is the National Transport Authority that has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under Public Service Obligation contracts.

The conditionality around the BIK exemption for the TaxSaver scheme falls under my remit as Minister for Finance.

I can confirm that Department of Finance officials have engaged with the Department of Transport, as well as stakeholder groups, in relation to the TaxSaver scheme and other forms of sustainable travel, in particular, in relation to Shared Mobility services.

As with all tax policy measures, the TaxSaver scheme is kept under review by Department of Finance officials. At present, I am satisfied that the scheme operates as intended.

Proposals in respect of tax expenditure measures are assessed in accordance with my Department's Tax Expenditure Guidelines. It is important to note that Government policy is based on the principle that tax expenditures should be used in limited circumstances where a demonstrable market failure exists, and the measure is more efficient than a direct expenditure intervention. In its comprehensive review of the Irish tax system, the Commission on Taxation and Welfare (2022) supported this position. It is particularly important in considering proposals in respect of tax expenditures that the Government be mindful of the public finances and the many demands on the Exchequer.