asked the Minister for Finance why the ration allowance of £2 1s 5d paid to soldiers living at home is subject to income tax, whilst it is not considered when annual increases are given nor for pension purposes.

All sums received from an office or employment are chargeable to income tax in accordance with the provisions of the Income Tax Acts. Thus, allowances paid by an employer to an employee, in lieu of meals etc., are assessable to tax as additional remuneration. The ordinary employee who must spend a considerable portion of his earnings on food and accommodation is charged to tax on the whole of his earnings. If an exception were to be made in the case of taxpayers who receive allowances in respect of board and lodging, these taxpayers would be in a more advantageous position than their fellow employees.

I might add that my understanding is that the ration allowance is, in fact, considered to be part of soldiers' pay for the purpose of pay revisions and that their pensions are not directly related to pay but are revised from time to time in the light of the adjustments in pay.