The anticipated 4 year National Recovery Plan from the Irish government was released today.
Some of the key points include …. (This post wil be updated as details arise)
The minimum wage is being cut by 1 euro per hour, to €7.75 / hour. (A 12% Cut)
Corporation tax remains at a rate of 12.5%
VAT is being increased from 21% to 22% in 2013 and 23% in 2014.
Welfare benefit cuts of €2.8 billion by 2014 . A radical reform of the existing child benefit and unemployment system will be announced on 2011 budget day
The rate of income tax relief on pension contributions will be reduced from 41% to 34% in 2012, to 27% in 2013 and 20% in 2014.
By 2014 – everyone will start paying income tax on annual earnings of €15,300 ( Currently €18,300 ) . By 2014, net pay for a single person on €55,000 will be reduced by €1,860 per annum (€36 per week) or 4.8%. The net pay for a married one-income family on €55,000 will be reduced by €2,310 per annum (€44 per week) or 5.4%.
A new ” site value tax” will be introduced in 2012 – minimum of €100 per property.
Student registration fee to rise from €1,500 to €2,000
Carbon Tax to be doubled by 2014
Public Service Pay – an immediate 10% reduction in the pay of all new entrants to the public service
Education – School Funding: In 2011 – a 5% reduction in all capitation grants, including grants for Adult Literacy, Community Education, School Completion Programme, Youthreach.