54 Tomás Mac Giolla asked the Minister for Finance if he intends to proceed with his stated intention to consider the taxation of disability benefit, occupational injury benefit and pay-related benefit; if he considers that such a move would, in fact, constitute a reduction in these benefits; and if he will make a statement on the matter.

Section 15 of the Finance Act, 1992, provides inter alia for disability benefit (including injury benefit comprised in occupational injuries benefit) and any associated pay-related benefit, to be treated as income for tax purposes. It also provides for the making of a Commencement Order or Orders to bring such treatment into effect. The necessary arrangements have not yet been finalised, but I would expect that an announcement would be made about the matter in the fairly near future. There will of course be no change in the present tax status of these benefits until the commencement date for their treatment as income for tax purposes. I would also point out that Section 15 of the Finance Act, 1992, provides that a positive motion of the Dáil, approving of a draft Commencement Order, will be required before such an Order is actually made.

I do not accept the Deputy's contention that treating these benefits as income for tax purposes would in fact constitute a reduction in them. The extent, if any, to which taxation will arise in a given case will essentially depend on the amount of other income the recipient has in the same tax year. In addition, in very many cases taxation will in practice simply take the form of reducing or stoping refunds of tax being made to benefit claimants.