The only tax rise in the Budget is a 50 cent hike in the price of a packet of 20 cigarettes – up to around 10.50 euro for a packet.
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Mr Noonan said the priority of the Budget is “to keep the recovery going while providing relief and better services for the Irish people”.
Agri-food sector accounts for 12% of our exports.
Minister Noonan also confirmed there will be plans introduced to ease the transfer of farm ownership.
The Restaurants Association of Ireland (RAI) is welcoming the retention of the 9% Value-Added Tax rate.
Noonan also noted that this is despite the fact that the need for it is diminishing each year in Dublin, as room rates have been rising during times of major events. These will be included as part of the Commemorations Programme. This approach does not fit with the Government’s self proclaimed family-friendly Budget for 2016.
The minister said the pension fund levy had “done its job” and would end this year. “It’s well worth doing and the banks are willing to pay”, Noonan told a news conference after announcing the extension during his budget speech.
The Government estimated that more than 700,000 workers will not be suffering under the USC next year.
A 1% reduction to USC is the most likely outcome – the government is looking to target those hit hardest by the marginal rate of 51% – the combination of upper rate tax 41%, 7% USC, and 3% PRSI.
In its final Budget before the country goes to the polls, the Fine Gael/Labour administration unveiled a €750m giveaway Budget – the first since it came to power.
A single person on minimum wage will gain €708 per annum.
“This is the only tax increase in the Budget”. Cigarette tax is the only tax increase and is expected to raise €4 million. A small increase in the price of diesel is also expected.
Key among the reforms is free childcare for children from three years of age until they are five and a half, or until they start primary school.
There has been an increase of €5 in the child benefit payment, bringing it up to €140 per month from next year.
And 12 years after our nearest neighbour the United Kingdom introduced two weeks statutory paternity leave, the coalition has announced similar measures.
2,000 more teachers, and 600 additional Gardai are to be recruited.
Ireland’s finance minister effectively kicked off the government’s re-election campaign yesterday by using the spoils of a newly booming economy to reduce taxes and reverse unpopular cuts in an all-encompassing budget.
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Now only available to under 6s (and over 70s), the coalition said it wants to extend the scheme to all children under 12 years.
