Budget day has arrived – and with all the leaks most of the Budget seems to be already known. Here is a round up of the latest predictions of what is going to be announced . These are based on “leaks” as well as older information that has been known for months. We will keep you updated about the Budget announcements as they happen today.
The 2013 Budget – will be announced later today and it will be aiming to get back at least €3.5 billion in a combination of cuts to spending and in increased taxation.
About €1.25 Billion in extra taxes and charges are expected in 2013 – we are expecting increases to the following :-
Carbon tax – which will affect gas, petrol diesel .
Excise duty on tobacco and possibly on alcohol too.
VRT – which will increase the cost of new cars. A 15 per cent rise is expected on average.
Motor tax – further restrucuring is expected (that means increases!). An average figure of 15% has been mentioned.
PRSI– may be extended to apply Employee PRSI to rental, interest and dividend income of PAYE workers . The PRSI exemption may be lowered or abolished – which will mean people earning ubder €18k will start paying PRSI.
USC – increase for over 70’s – from 4% to 7% with income over €60,000.
Property Tax – full details of the new residential property tax will be released on Budget Day – but we already know some of the details . The average property tax could be in the region of €350 . More about the Property Tax Here. The latest rumour is a higher rate of property tax on homes valued at over €1 million.
Tax relief on pension contributions might be cut . The 40% rate may be cut to at least 30% or even 20%. Another option suggested is to cap at €60,000 the amount of annual tax relief available for pension contributions.
Other possible tax changes include increases to DIRT , Capital Gains Tax and a new “Fat Tax” on fatty/sugary foodstuff. Increased taxes on betting.
Spending reductions of about €2.25 Billion are expected mainly in the areas of welfare entitlement reforms and some capital projects .
Child Benefit cuts of some form are expected – a €10 a month cut has been mentioned – probably with balancing increases on means tested benefits so that poorer families are not affected. The option of taxing it is not possible beacause the computer systems currently can’t cope.
VAT is reported to be dropped on construction related items from 13.5% to 9%
Private schools may see their financial support cut.
Medical card holders could see the 50 cent prescription charge rising to €1
Hospital A&E charge of €100 could be going up again.
The income level in the means test for the over-70s medical card could be reduced – which will mean some of them losing their card. It is being reported that the income limit will drop from €36,000 to €30,00 for a single person and from €72,000 to €60,000 for a couple .
Changes to eligibility rules for the Jobseekers Benefit – with the time period being cut from 12 months to 9 months . After that it will be means tested .
There was a mention of the free telephone allowance for pensioners being halved .
There is always the possibility of cuts to public sector wages , public sector pensions .
Privatisation of state assests is also on the cards – with the receipts being used to reduce debt. ESB have already been told to prepare to sell of €400 million of assests. More sell offs may be announced in the Budget.
More IMF suggestions for Budget 2013 Ireland.
Sinn Fein Budget 2013 Proposals
No mention of a wealth tax? ESB is a profit making state company and if it’s sold to private investors our bills will rise even more (in this capitalist society) and we will no longer benefit from the profits made by the ESB and we will expect further job loss and more immigration. We have truly lost all sovereignty and the people who buy our state assets will be the same private bondholders, bankers that we are paying UN-guaranteed debts to who are also the same people we need to borrow from (with interest) to run our country. What sense does all this make? We don’t even owe that money to these people? They took a chance on investing in our economy and expect the money back if their investment fails and then lend that very same money back to us to make a profit!! The world is gone mad
In my opinion the rich should definately be targetted more so than the 3rd class families of ireland. And some sort of management put in placed to manage the volume of immagrants entering ireland to abuse the social welfare system in paticular.Big bankers pension should be reduced. AND THE IRISH GOVERMENT SHOULD TAKE BACK THE MOUTHS AND VOICE TO SPEAK ON BEHALF OF THE IRISH PEOPLE NOT THE IMF.The rich are the rich and the poor are the poor this needs to change NOW.
Well done, Gerard. It would have a problem with people who contribute very little indeed and then criticise those who they percieve to be “rich”. That usually means people who are hard working and ambitious. Why should people who work hard to extract themselves from State supports be targeted to pay for those who quite obviously do not? I have no problem with social welfare and State supports but as a safety net for people, not as an alternative to working. So often do I hear that wages are so low it is hardly worth working. What doe these people expect?
Imelda says “The rich are the rich and the poor are the poor this needs to change NOW”. Well Imelda, be the force of the change you want to see in your own life – start making something for yourself insteading of demanding it off others.
The comment above couldnt be more biased against under privillaged families. I myself am currently on the jobseekers allowance scheme and NOT due to a lack of motivation to work or infact because I see social welfare as an “alternative to working”. I agree the amount of people on these schemes that are on it for other reasons like the ones you stated is rather high and infact a problem with this country, but please, dont paint us all with the same brush. Money would be better spent investigating false claims, looking into current welfare claims to ensure their authenticity rather than grouping everyone as some minority of under-achievers. And if the right resources were put into this then the amount of fraud claims that would be cancelled would surley put a dent in government spenditure.
How can they not announce the property tax ……… investors are coming out of the property market in droves whilst they are being hit with NPPR on every ‘unit’ and now they won’t even announce something which could drive more out and further delay any impetus for those who may wish to return to the market
They probably want to avoid too much “bad news” on the one day. It will probably be announced fairly soon after (or before?).
Higher taxes don’t achieve anything. What really matters is how money is spent. The more income received via taxes, the more income ie tax money, is squandered by the government, and other senior civil servants. That’s the problem the world over at the moment.
Seems to be a problem with being “rich” these days. What is “rich”? Seems to me that people who worked hard, saved a few euro’s, maybe bough a property or a business, people that have contributed to society all along, ie the so called “rich” are being un-rewarded for their prudence.
WE need to cut spending, not increase taxes.
Why are prescription drugs 4 times more expensive in Ireland than the UK? MONEY wasted
Why are the guards chasing criminals, when the law/judges let them constantly walk free? MONEY wasted
What was benchmarking all about? How about un- benchmarking. Not so with the choke park agreement.
Why do doctors/consultants make double the pay of their German counterparts?
Why are we spending so much on foreign aid, when we have to borrow the Money and pay interest on it – we don’t have the money-
Why is the pay and expenses of politicians much higher that in almost any other European country?
Leaders allowance of €40,000 to independents- what the hell is going on?
Why are we giving effective VAT rebates to the large multinationals for selling beer below cost/at cost, while at the same time loosing substantial vat revenue from the licenced trade, effectively subsidising large business.
I could go on for a very long time.
Comon sense in
The Irish government needs to realize that with the introduction of property taxes, other costs should be abolished. I live in Canada and pay $3600 per annum for my 1300 square foot house. I do NOT pay for my child’s school books or uniforms. I do not pay for garbage pick up. I do not pay road tax. I do not pay to visit my GP. Any child benefit payment is means tested and we are not ENTITLED to a house.We get a rent subsidy if needed but never a house. Our seniors do not automatically qualify for free units of anything but there are programs in place to help our seniors that need help. Duplicating and triplicating taxes is an unfair method of tackling your debt crisis. After spending last Summer in Ireland I felt a lot of anger and resentment from the Irish people against an unfair and an inequitable system that makes the same people bear the brunt of the burden. No wonder you continue to lose your best and brightest through emigration. Wake up Irish government and do the right thing.