Sir, - If one accepts that taxing benefits-in-kind is justified (although many would argue otherwise) I would urge the Minister to introduce a more equitable system for company cars in the December budget.
In my opinion, tax should be based on the value of the car in the current year. If my company allocates, say, £20,000 for the purchase of my car, I could opt for a new mid-range family saloon, or for a four-year-old Mercedes or BMW at the same cost. Why should I be taxed on the basis of £40,000 and therefore pay double the amount?
It would be a simple matter to introduce a standard depreciation system - 20 per cent of the reducing balance per annum, for example - and use this figure for BIK purposes. There could be a minimum value set of £10,000. A £40,000 car would then be assessed at a value of £20,480 in year five. - Yours, etc.,
Bill McConnell, Sandyford Village, Dublin 18.