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Dáil Éireann díospóireacht -
Tuesday, 23 Jan 1996

Vol. 460 No. 3

Written Answers. - Pension Increases.

Eric J. Byrne

Ceist:

109 Mr. E. Byrne asked the Minister for Finance if he will address the situation whereby pensioners who receive increases in their pensions actually end up with less income in view of the circumstances of a person (details supplied) in Dublin 12; and if he will make a statement on the matter. [19245/95]

I have had inquiries made of the Revenue Commissioners in relation to this taxpayer's case. I have been advised that the pension of the taxpayer in question amounted to £770.86 gross up to and including October 1995. In November 1995, his pension increased to £790 per month.

As the Deputy is aware, persons who earn £178 or less per week are exempted from paying the Health and Employment & Training Levies, amounting to 2.25 per cent. However, as the increase in this taxpayer's pension brought his income over the threshold, his income became liable for the levies. It was this element which effectively offset the increase in his pension.

The threshold has been increased progressively in recent budgets to try to deal with such problems but, unfortunately, given the nature of the levies in question, it is not possible to address every particular case.

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