Vol. 255 No. 3
asked the Minister for Finance how much it would cost the Exchequer to raise the tax free allowance for a married couple to £14.15 a week so as to ensure that people whose incomes are below the poverty line, as laid down by the British Supplementary Benefits Commission, do not have to pay income tax.
11.
asked the Minister for Finance how much it would cost the Exchequer to raise the tax free allowance for single men and girls to £10.40 a week to ensure that people below the poverty line, as laid down by the British Supplementary Benefits Commission, do not have to pay income tax.
I propose with your permission, a Cheann Comhairle, to take Questions Nos. 10 and 11 together.
Presumably, the Deputy has in mind an increase in the income tax personal allowances for single, widowed and married persons. These allowances and the appropriate earned income relief are the main elements of the weekly tax-free allowances for PAYE purposes.
The cost of increasing the married personal allowance so as to raise the tax-free allowance to £14.15 a week is estimated to be £2.7 million in a full year.
The cost of increasing the personal allowances for single and widowed persons so as to provide a tax-free allowance of £10.40 a week is estimated to be £17.8 million in a full year.
May I ask the Minister if he is aware of the plight of some young boys and girls in this city who, because of their various living expenses, together with taxation, find themselves in extreme hardship?
The Deputy will appreciate that the level at which tax is payable is the same for everybody. I have given some indication of the costs that would be involved in changing the tax structure in accordance with the figures suggested in the question. Taking both together, the amount would be about £20 million. If such changes were to be made, the question would arise as to how we could cut out services so as to save this amount or, alternatively, impose some other form of taxation in order to raise that kind of money.
Is it not the case that the existing tax structure results in many cases in people paying income tax who are below the poverty line and does this not negative to a considerable degree all the Government say they are doing in the field of social welfare? Would the Minister not consider that if any increases were to be given, this is the area in which they should be given so that the benefit would accrue to the lower-paid workers?
I would not accept the Deputy's statement that people who are paying income tax are living below the poverty line.
Of course, they are.
Is it not true that these people are living at a level below that laid down by the British as the poverty line?
This is not relevant.
Is the Minister aware that very often a mistake occurs in computing the amount of tax payable?
This has nothing to do with the question.
A young lady told me that because of such a mistake she had to pay an additional £4 or £5 per week. Such an incident can cause serious embarrassment and real difficulty.
This is a separate matter. The Deputy is talking about a mistake being made but that is a different matter from the question of the level of taxation payable.
I am calling Question No. 12.
Would the Minister not agree that income tax is being paid by people who are below the poverty line?
Would the Deputy please allow the Minister to answer his questions? Question No. 12.
