Ned O'Keeffe
Question:50 Mr. E. O'Keeffe asked the Minister for Finance if he will eliminate the taxation of unemployment benefit for seasonal workers in the Finance Bill. [2673/97]
Written Answers. - Income Taxation.
It is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. In line with this principle the majority of social welfare payments, including unemployment benefit (UB), are therefore reckonable as income for tax purposes. Treating such benefits as income for tax purposes is essentially a matter of equity.
I draw to the Deputy's attention that the Government's programme of renewal stated that the method of taxing UB would be restructured in order to improve the position of those most adversely affected. This commitment has been met in the first instance through the significant income tax reductions introduced in my three budgets. In addition, a number of targeted UB measures were introduced in the 1995 Finance Act. The first £10 per week of UB is now disregarded for income tax purposes and, to assist families, child dependant additions payable with UB are exempt from income tax with effect from 6 April 1995.
These measures were introduced to help address the issue raised by the Deputy.