Martin Mansergh (Tipperary South, Fianna Fail)

The pension levy will not apply, because the pension will be funded by the European Parliament under the levy legislation.

The European salary is subject to national taxation, namely, income tax. I would differ from Deputy Costello in one respect. Let us suppose that there was a common EU taxation system for MEPs such as that which applies to European Commission officials. It is a relatively low level of taxation by our own national standards. The perception would be that when one takes salary and all the various allowances and supports, MEPs would be generally regarded as well remunerated. The public here, who send our MEPs to Europe, would probably be happier that they would be subject to national taxation provisions. Like all public representatives, other than those who live and work in the centre of this city, MEPs are bilocated between the European Parliament and their home country residences. In that respect they differ from European Commission officials, the majority of whom live away from home most of the year.

Normal national taxes will apply in all respects with credit for tax paid to the EU to avoid double taxation. The taxation reflects the fact that MEPs will continue to reside and be based here at least in part.

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