Denis Naughten (Roscommon-South Leitrim, Fine Gael)

The frustrating aspect of the proposed levy is that while the theoretical objective of the measure is to support the cost of pensions, non-pensionable income such as overtime and allowances will be subject to the levy. Even income generated prior to the introduction of the legislation will be subject to it. The Minister must clarify his position on these issues and what measures will be taken to address the issue of pensions. As he indicated, the levy will not apply to certain semi-State companies, even though the State is liable for pensions which must be paid in that sector of the economy.

Many people would have accepted in principle the introduction of a pension levy if it was proposed to use the fund to finance their pensions in the long term. This is not the case, however, and many people will be frustrated to learn that the income levy will be paid on the pension levy, which amounts to another form of double taxation. Those who pay the pension levy will not derive any benefit from it.

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