Proinsias De Rossa
Ceist:85 Proinsias De Rossa asked the Minister for Finance the revenue or estimated revenue to the Exchequer from applying income tax to disability, unemployment and maternity benefits in a full year.
Written Answers. - Taxation of Disability Benefit.
The taxation of disability benefit commenced with effect from 6 April, 1993. An estimated full year yield to the Exchequer of £20 million has been included in the budget arithmetic.
The taxation of unemployment benefit and maternity benefit would, it is tentatively estimated, result in a full year yield as follows:
|
£m |
|
|
Unemployment benefit |
30 to 40 |
|
Maternity benefit |
4 |
The impact of taxing unemployment benefit clearly varies from one individual to another and is dependant on factors such as the income earned by a taxpayer whilst employed, the month in which the taxpayer becomes unemployed, the marital status of the taxpayer and whether the taxpayer has a spouse in employment. The precise operational arrangements to apply would also affect the yield.
Because of these factors the estimate of yield from taxing unemployment benefit is subject to a wide margin of error.