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.”
- 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