Experts had urged no tax of maternity benefit

The expert group appointed by the State to examine the taxation system specifically recommended against taxing maternity benefit.

There was surprise this week when Finance Minister Michael Noonan announced a move to tax the benefit, which pays from €217.80 to €262 a week, as part of the €3.5bn budget adjustment.

“From 1 July 2013, maternity benefit will be treated as taxable income,” he told the Dáil. “This measure will correct an anomaly so that women on maternity benefit will pay the same level of income tax as when they are working.”