Vol. 432 No. 3
38 Mr. Yates asked the Minister for Finance if his attention has been drawn to the existence of certain low paid families who are experiencing hardship arising out of the taxation of disability benefit; and if he has considered any alleviating measures for such cases.
The taxation of disability benefit is essentially a matter of equity. It ensures that when two families in similar circumstances have the same amount of income one does not pay less tax than the other simply because one family's income contains DB and the second family's does not. Of course, I am aware that bringing any income into the tax net which was previously outside that net causes a direct loss of net income for those affected. However, the income tax exemption limits, which I increased in the budget, will mitigate the effect for low income families.
