Local Senator Robbie Gallagher has welcomed the Government changes to the benefit-in-kind regime for vehicles to reduce the tax bill for people with company cars.
Fianna Fáil Finance Minister Michael McGrath announced last Tuesday that a €10,000 relief is to be applied to the Original Market Value of cars in Category A-D to reduce the amount of benefit-in-kind payable.
It means that for the purposes of calculating benefit-in-kind liability, employers may reduce the Original Market Value by €10,000. This treatment will also apply to all vans and electric vehicles.
Minister McGrath made the changes as part of the Finance Bill. The measure will be backdated to January 1 and will remain in place until the end of the year.
Senator Gallagher said he welcomes the changes announced by Minister McGrath to address the hike in taxes experienced by people with company cars and vans since the start of the year.
He added while the move to a C02 based Benefit-in-Kind system is an important part of achieving our climate targets, a significant number of employees with company cars and vans experienced large increases in their income tax since the start of the year.
