Dáil Éireann díospóireacht -
Thursday, 21 Apr 1994

Vol. 441 No. 7

Written Answers. - Tax Exemptions.

Peadar Clohessy

Ceist:

33 Mr. Clohessy asked the Minister for Finance, in respect of workers participating in a systematic short-time working arrangement recognised by the Department of Social Welfare, the number of individuals who will be exempt from the new tax arrangement as a result of this proposal; the proportion of these who are in receipt of unemployment benefit; the short term working arrangements which qualify an individual from exemption from taxation; and the extent of the tax foregone by the Exchequer as a result of this proposal.

Minister for Finance (Mr. B. Ahern)

Unemployment benefit has been reckonable as income for tax purposes from 6 April, 1994. It has, however, been decided that, in recognition of their special circumstances, workers who on 5 April, 1994 were participating in a systematic short-time working arrangement, recognised by the Department of Social Welfare, will be exempted from the new tax arrangements. This exemption will apply in respect of unemployment Benefit payments received in relation to systematic short-time working for the duration of such an individual's current unemployment benefit claim or to the end of the present tax year — 5 April, 1995 — whichever is the earlier. As I indicated in my press statement of 11 April, 1994, and my Second Stage Dáil speech on the Finance Bill on Tuesday, I will be bringing forward a Committee Stage Finance Bill amendment to this effect.

I am advised by the Department of Social Welfare that on 5 April, 1994 there were approximately 7,000 workers who are classified as being on systematic short-time working. All these workers are in receipt of unemployment benefit and will qualify for the exemption. The reduction in tax yield arising from this measure is estimated at £1 million in 1994 and £1 million to £2 million in a full year.