Dáil Éireann Debate, Tuesday - 2 November 2021
249. Deputy Catherine Murphy asked the Minister for Finance the estimated revenue that would be forgone by the Exchequer annually by making maternity benefit exempt from income tax; and if he will make a statement on the matter. [52070/21]
View answer250. Deputy Catherine Murphy asked the Minister for Finance the estimated revenue that would be forgone by the Exchequer annually by making adoptive benefit exempt from income tax; and if he will make a statement on the matter. [52071/21]
View answer251. Deputy Catherine Murphy asked the Minister for Finance the estimated revenue that would be forgone by the Exchequer annually by making paternity benefit exempt from income tax; and if he will make a statement on the matter. [52072/21]
View answer252. Deputy Catherine Murphy asked the Minister for Finance the estimated revenue that would be forgone by the Exchequer annually by making parents benefit exempt from income tax; and if he will make a statement on the matter. [52073/21]
View answerI propose to take Questions Nos. 249 to 252, inclusive, together.
I am advised by Revenue that a tentative estimate of the revenue foregone by exempting:
- maternity benefit from income tax is of the order of €45m;
- adoptive benefit from income tax is of the order of €0.04m; and
- paternity benefit from income tax is of the order of €2.6m.
I am advised by Revenue that it does not have information available yet in relation to the cost of exempting Parent's Benefit, as this was introduced in 2019 and the latest year for which a full set of income tax returns is available for analysis is 2018.
Finally, as a general rule, social welfare payments are taxable and exemption from taxation usually occurs only in cases where the payment in question is a mean-tested payment.
