Govt Confirms Higher Reimbursement for Commuting Costs

By , 23 Jun 2022, 16:30 PM Business
Govt Confirms Higher Reimbursement for Commuting Costs Premshree Pillai CC-by-NC-SA-2.0

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STA, 23 June 2022 - The government has confirmed higher reimbursement of commuting costs as one of the ways to mitigate the impact of high energy prices on household expenditure.

For travel to and from work, workers will get 21 cents per kilometre, up from 18 at present. For official company trips, the rate rises from 37 to 43 cents per kilometre from the start of July, according to a decision adopted by the government on Thursday.

These rates are untaxed. Companies can cover higher commuting costs for workers, but any payments above these levels are taxed as income and rarely used.

The Finance Ministry has described the changes as an "urgent, complementary and temporary measure" taken due to surging fuel costs.

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