Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin have been presenting Budget 2013 to the Dail.
It contained tax raising measures amounting to one and a quarter billion euro and cuts in spending amounting to 2.2 billion.
Central to budget was the much flagged property tax. It will kick in next July and will be charged at 0.18 percent of the value of your home. A so called mansion tax for houses valued at over a million euro will also be introduced at a rate of 0.25 percent.
The Non-Principal Private Residence charge or ‘second homes tax’ will remain in effect next year, meaning those people will be hit on the double, while as of next July arrears on July 1st will be increased to 200 euro and will be collected through local property tax system.
There are to be changes to PRSI contributions. The 127 euro weekly tax free allowance is to be scrapped with PRSI being paid on all income instead. Landlords and people with shares will not escape either. PRSI is now to be charged on rental income and share earnings.
Pensioners with high incomes are to be hit with a 3 point increase in the Universal Social Charge on incomes over 60,000 euro. Pensioners telephone, electricity and gas allowances are also being reduced, but are to be no cuts to rent or fuel allowances.
The Minister’s not increasing excise duty on petrol or diesel.
However he is targeting the other old reliable’s – 10 cent is being added to the price of 20 cigarettes and 50 cent on a 25gramme pack of tobacco.
10 cent is being added to a measure of spirits and one euro on a bottle of wine.
As widely predicted, child benefit is to be cut by ten euro per month. But there are no cuts to weekly social welfare payments
There’s to be a significant increase in the charge for attending A&E and medical card holders will see the price they have to pay for a prescription increased to one euro fifty.
Motor tax is going up as is VRT and third level registration fees are also going up by 250 euro.
Changes to TD’s expenses are on the way. They will soon have to provide receipts for all their expenses, the overall expense budget is to be cut by 10 percent and the severance pay to outgoing ministers is to be abolished.
There’s to be a clampdown on sickpay in public service.
