Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Finance if he has projected the amount an average person will lose a year when maternity benefit is taxed from July; and if he will make a statement on the matter. [15069/13]

Michael Noonan (Limerick City, Fine Gael)
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The precise number of recipients that will be liable to income tax on their maternity benefit payment is not available. However, I understand that the Department of Social Protection have estimated that the average weekly maternity benefit recipients in 2013 to be 22,800, including those who will not have an increased liability to income tax.

As a result of maternity benefit payments becoming liable to income tax for all claimants, from the 1 July 2013, a number of possible tax outcomes could arise:

1.An individual may pay no income tax on their maternity benefit payment as their tax credits will be sufficient to reduce their tax liability to zero.

2.An individual may pay income tax on some or all of their maternity benefit payment at the standard rate.

3.An individual may pay income tax at the standard rate on a portion of the maternity benefit and the higher rate on the balance of the maternity benefit payment.

4.An individual may pay income tax on their maternity benefit payment at the higher rate.

Accordingly, the tax liability on maternity benefit payments will ultimately depend on the total income of the individual or couple concerned in the tax year or years concerned.

I would point out though, that maternity benefit payments will remain exempt from Universal Social Charge and PRSI.