asked the Minister for Finance if he is aware that certain agricultural employees at the Munster Institute are taxed for income tax purposes at the standard rate rather than under the PAYE system, and that this system imposes considerable hardship on the workers concerned; and if he will arrange for these men to be taxed under the PAYE system.
Ceisteanna—Questions. Oral Answers. - Munster Institute Employees.
17.
Employees at the Munster Institute are remunerated by the Department of Agriculture and tax is deducted from their emoluments in accordance with the usual system of tax deductions in operation for those paid by Government Departments.
There seems to be some confusion arising from the circumstance that while the standard rate of income tax is 6s. 4d in the £ the rate used in making PAYE deductions from pay is 4s. 9d. The explanation is that the 4s. 9d rate is a method of granting the Earned Income Relief deduction from the taxable income. Persons not within the PAYE system get the Earned Income Relief before their income is charged to tax. The charge on a given income is the same whichever method is adopted.
On the general question of bringing State employees under the PAYE system, I would refer the Deputy to the reply given to Deputy Norton on 17th February last.