Ciara Conway (Waterford, Labour)
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107. To ask the Minister for Finance the amount of revenue raised by the changes in the taxation of social welfare payments; and if he will make a statement on the matter. [36076/13]

Michael Noonan (Limerick City, Fine Gael)
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It is regrettable that I am unable to answer the Deputy’s question as it is unclear which social welfare payments the Deputy refers. For instance, Section 7 of the Finance Act 2012, amended Section 126 of the Taxes Consolidation Act 1997 in order to remove the tax exemption that applies to the first 36 days of Illness Benefit and Occupational Injury Benefit per annum payable by the Department of Social Protection, as announced in Budget 2012. In addition, Section 8 of the Finance Act 2013, amended section 126 of the Taxes Consolidation Act 1997 to apply income tax to maternity benefit, adoptive benefit and health and safety benefit, payable by the Department of Social Protection with effect from 1st July 2013.

Furthermore, the majority of social welfare payments are reckonable as income for tax purposes. These include long-term payments such as Disablement Benefit, the State Pension, Widows, Invalidity and Blind Pensions, Carers Allowance and the One Parent Family Payment, as well as short term benefits such as Job Seekers Benefit. I am advised by the Revenue Commissioners that information on Income Tax receipts are not recorded in such a manner as would enable the tax yield from social welfare payments to be distinguished from the tax attributable to other income sources.

Ciara Conway (Waterford, Labour)
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108. To ask the Minister for Finance his views that the revenue raised by the taxation of social welfare payments should be ring-fenced to protect the social welfare payments; and if he will make a statement on the matter. [36077/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, it is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. In line with this principle, the majority of social welfare payments are reckonable as income for tax purposes. These include long-term payments such as Disablement Benefit, the State Pension, Widows, Invalidity and Blind Pensions, Carers Allowance and the One Parent Family Payment, as well as short term benefits such as Job Seekers Benefit. Treating these payments as income for tax purposes is essentially a matter of equity.

The taxation of these payments form part of the overall receipts of income tax and are paid into the Central Fund. They are therefore available, along with other sources of tax revenue, non-tax revenue and capital receipts as well as the funds sourced from borrowing, to fund overall Exchequer expenditure.

I am not in favour of hypothecating receipts from the taxation of social welfare payments or indeed any other taxes for any particular purpose. All revenues collected by the state should go to the Exchequer.