Catherine Murphy (Kildare North, Social Democrats)
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249. To ask the Minister for Finance the estimated revenue that would be forgone by the Exchequer annually by making maternity benefit exempt from income tax; and if he will make a statement on the matter. [52070/21]

Catherine Murphy (Kildare North, Social Democrats)
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250. To ask the Minister for Finance the estimated revenue that would be forgone by the Exchequer annually by making adoptive benefit exempt from income tax; and if he will make a statement on the matter. [52071/21]

Catherine Murphy (Kildare North, Social Democrats)
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251. To ask the Minister for Finance the estimated revenue that would be forgone by the Exchequer annually by making paternity benefit exempt from income tax; and if he will make a statement on the matter. [52072/21]

Catherine Murphy (Kildare North, Social Democrats)
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252. To ask the Minister for Finance the estimated revenue that would be forgone by the Exchequer annually by making parents benefit exempt from income tax; and if he will make a statement on the matter. [52073/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 249 to 252, inclusive, together.

I am advised by Revenue that a tentative estimate of the revenue foregone by exempting:

- maternity benefit from income tax is of the order of €45m;

- adoptive benefit from income tax is of the order of €0.04m; and

- paternity benefit from income tax is of the order of €2.6m.

I am advised by Revenue that it does not have information available yet in relation to the cost of exempting Parent's Benefit, as this was introduced in 2019 and the latest year for which a full set of income tax returns is available for analysis is 2018.

Finally, as a general rule, social welfare payments are taxable and exemption from taxation usually occurs only in cases where the payment in question is a mean-tested payment.

Seán Canney (Galway East, Independent)
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254. To ask the Minister for Finance if he will consider a reduction in the rate of VAT for music and live entertainment performers from 23% to 9% to realign with the hospitality sector; and if he will make a statement on the matter. [52080/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The VAT rating of goods and services is subject to EU VAT legislation with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate from VAT. Ireland, in line with the VAT Directive, also maintains several standstill provisions and derogations that allows it to maintain reduced rates to certain supplies for historical reasons. It is on this basis that Ireland has provided for an exemption from VAT to live theatrical or musical performances (excluding dances) where no food or drink is served. A reduced VAT rate of 9% applies to live theatrical and musical events where food or drink are available for consumption.

It is not possible under the VAT Directive to allow a reduced rate of VAT to be applied to the fee charged by a performer; this can only be applied to the promotion and admission charges. This means that where a band or entertainer is hired for a function such as a wedding, the hiring service is subject to the standard rate of VAT, currently 23%.