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Budget 2007, winners & losers - Irish Job News - News on Jobs for Ireland


Budget 2007, winners & losers

6 December 2006 | Ireland | 2 Responses by paul savage.

Minister Brendan Cowen will deliver his Annual Budget today. This year there has been better-than-expected Government earnings, so Mr Cowen may be persuaded to trim up to 2% off the 42% top rate of income tax while also significantly increasing tax credits.

The Old Age Pension is also expected to rise above €200/week for the first time. Speaking ahead of today’s Budget, Mr Cowen told RTÉ: “We will have an enhanced health package. Care for the elderly is an important issue. It is also vital that the disability sector is looked after.”

Summary:

  • A packet of cigarettes increase by 50c
  • Pensioners will get €209.50 / week
  • Minimum unemployment benefit €185.50 / week
  • Top rate of tax is reduced to 41%, for people earning over €34k / year
  • Higher entry into tax bands, now it’s €17,600 / year, so 88k fall from the tax band.
  • Special Olympics Ireland will get a €2 million, one off allocation. And there is no tax going to be charged for land and buildings used for tax purposes.
  • No increase in diesel, petrol and alcohol excise duties.
  • Mortgage interest relief will double, to €133 for a married couple or €66 for a single person

Over all it seem okay. At least they are trying to add in some changes. Changing the top tax bracket does seem like a let down low earners, who would like to see the richer people paying more (as they can afford more). Also 50c on 20 cigarettes is a significant increase, but probably not enough to stop people from buying. The Irish Heart foundation had requested a €2 increase.

Are you happy with the budget ? Will it make a change ? add your comments

2 Responses

  1. emma said on 20 Dec 2006 at 10:02 am

    mortgage interest relief is great and the cigarette increase is also good. They should stop selling them in packs of ten so teenagers will not be able to afford them

  2. paul.savage said on 2 Jan 2007 at 11:36 am

    well that’s exactly what they are going to do. 10 packs will be outlawed. But one thing to remember is that kids group together to buy cigarettes, and would hardly buy a 10 pack at the start. So I fear all that will happen is now a few more kids will chip in for bill for a box of 20.

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