Summary of Ireland's Budget 2012
Income tax: No increase
VAT: Raised by 2% to 23%
Universal Social Charge: Exemption raised to €10,000 - this affects 330,000 people
Carbon Tax: Increased from €15 per tonne to €20 per tonne
This means:
1.4c increase on Petrol
1.6c increase on Diesel
€17.32 increase on Fuel Oil (to rise in May)
€14.46 increase on Natural Gas (to rise in May)
No Carbon Tax on solid fuels
Cigarettes: 25c increase on pack of 20
Alcohol: No change in excise duty
Legislation planned on low-cost alcohol
Gambling: Legislation planned on internet betting
Motor Tax: Changes to apply from 1 January
Band A up €56 to €160
Band B up €69 to €225
Band C up €28 to €330
Mortgage Interest Relief:
30% for first-time buyers between 2004 and 2008
25% for first-time buyers in 2012
15% for non-first time buyers
€100 household charge waived
Stamp Duty: No change to stamp duty on residential property
Capital Gains Tax incentive: Applies to property bought by end 2013 and kept for 7 years
Capital Acquisitions Tax: Up from 25% to 30%
Capital Gains Tax: Up from 25% to 30%
DIRT: Up from 27% to 30%
Corporate Tax Rate: To remain at 12.5%
50% Employer PRSI pension relief abolished
Tax up 1% to 6% on transfer of Approved Retirement Funds
Main points
€3.8bn fiscal adjustment needed in 2012
€2.2bn of adjustment from spending
€1.4bn in day-to-day spending cuts
€20m earmarked for new Labour Market Activation Fund
Public service staff down by 6,000
Public service pay bill to fall by €400m in 2012
Social
Weekly social-welfare payments unchanged
Changes to the one-parent family payment will save €20.7m
Child benefit for first and second child unchanged
Cut of six weeks in the cold-weather allowance
Jobseekers' benefit to be based on five-day week
Redundancy and insolvency changes will reduce employer rebate from 60% to 15%
Back-to-School Clothing Allowance abolished for two/three-year-olds
Payments for new claimants of Disability Allowance cut to €100 a week for people aged 18-21, and to €144 for people aged 22-24.
Health
€543m in net savings in the health area
Extra charges on private treatment in public hospitals
Drug Payment Scheme monthly threshold up from €120 to €132
New measures will reduce the price of drugs
2% cut in disability, mental health and children's services, saving €50m
Staff ceiling of 103,800 employees to apply to HSE in 2012
Education
€132.3m savings in education
2% cut in Higher Education funding - €7m saving
Increase of €250 in third-level student contribution
Changes to fee and maintenance supports for new post-graduate students
Education expenditure will comprise 17% of all current expenditure next year
€19.2m in cuts to trainee and apprenticeship schemes
Primary-school transport charge to be doubled to €100
Reform
Savings of €105m in Dept of Agriculture, Marine, Food
Savings of €45m in Dept of Transport, Tourism, Sport
Savings of €34m in Environment, Community, Local Govt
€52.9m cut in Overseas Development Aid
€79m cut in spending for An Garda Síochána
Sam Orgill
Take a browse around our website www.proactpartnership.com for info and ideas.
ProACT Professional Expatriate Advice Services for professionals, business and the retired living and working abroad or relocating overseas.
TAX SERVICES – WILLS & ESTATES – BUSINESS SERVICES – PROPERTY SERVICES
ProACT Paphos Cyprus office Directions www.proactpartnership.com/services
CYP TEL: +357 26 819 424 CYP FAX: +357 26 221 223
UK Tel: +44 1753 27 2116 UK FAX: +44 1753 27 2001
UK OFFICE: 59-60 Thames Street, Windsor, Berks, SL4 1TX, UK
CYP OFFICE: 5 Michalaki Christodoulou Street, Office 204, PO Box 62474, 8065 Paphos, Cyprus
Terms & conditions of use of our website including privacy and email data policiies www.proactpartnership.com/services
ProACT will never share your private data with anyone and passionately protect your privacy.
Comments