Dáil debates

Thursday, 3 October 2013

Ceisteanna - Questions - Priority Questions

Tax Code

5:00 pm

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance) | Oireachtas source

I thank the Minister, but his reply is the standard one we have heard since the introduction of this tax on maternity benefit. It is a retrospective tax in that the Minister is taking money from people's pockets when they most need it. If those women still had that money, they would be able to spend it in the economy, buying what they need for their child, but the Minister has just taken it out of the economy. A young woman contacted me recently about this matter. The tax came into force in July and people are only starting to feel the effects of it now. The young woman told me that her wages had dropped from €2,452 to €2,102, which means that €350 is being taken out of her wages every month, or almost €90 per week. Effectively, the maternity benefit payment has been reduced from €260 per week to approximately €170.

The Commission on Taxation has stated maternity benefit should not be taxed and I agree. Why the maternity benefit of women who are expecting children is taxed when the Government will not touch corporation tax is beyond me.

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