Tax increases and spending cuts of €3.5bn have been announced in Budget 2013.
Main points
New Property Tax from July 2013 of 0.18% on homes worth up to €1m, and 0.25% on those over €1m
Three-year exemption from Property Tax for first-time buyers, and people buying new or previously unoccupied homes
Child Benefit will be cut by €10 a month for the first and second child, €18 for third child and €20 for fourth and subsequent children
Basic weekly rate of Social Welfare untouched
Duration of Jobseeker’s Benefit reduced by three months, from a year to nine months
Maternity Benefit to be taxed from 1 July 2013
Income Tax untouched
PRSI will be payable on all sources of income
Weekly PRSI allowance for employees abolished
PRSI minimum up from €253 to €500 for self-employed
Health
Prescription charge for Medical Card holders is trebled to €1.50
GP-only cards for high-income earners over-70
Threshold for Drug Payment Scheme increased from €132 to €144 per month
Additional €150m set aside for health budget bringing it to €13.6bn
Motorists
Motor Tax and Vehicle Registration Tax rates to rise in January 2013
Motor tax increases on cars taxed on the basis of their CO2 emissions will range from €10 to €92 per annum
Pre-2008 cars still taxed on engine size to see rates rise by between €21 and €126
VRT rates on new cars set to increase depending on CO2 emissions
New car registration system distinguishing cars bought in the first six months of the year from those bought in the second six months
Excise Duty
Duty on 20 cigarettes up by 10 cent from midnight
Pint of beer or cider up 10 cent from midnight
Standard measure of spirits up 10 cent and 75cl bottle of wine up €1 from midnight
No increase in excise duty on petrol and diesel
Education
Third-level registration charge to increase by €750 between 2013 and 2015 – €250 each year
Allocation to VECs to be cut by €13m
Pupil-teacher ratio for fee paying schools to be increased
Pensioners
No change to State pension
Standard rate Universal Social Charge to be paid on pensions over €60,000
Changes to the universal telephone and electricity allowance
Early withdrawal of Additional Voluntary Contributions to be allowed up to 30% of contribution
Public Service Reform
100 garda stations to close, plus a reduction in the opening hours of another seven
Ten-point tax reform plan targeting small business
Public Service staff numbers to be reduced to 287,000 in 2013 and to be further reduced to 282,500 in 2014
Politicians
Unvouched expenses to be abolished for Oireachtas members
Party Leaders’ Allowance to be cut by 10%
Proposals to introduce legislation to abolish severance pay for office-holders
Taxes
Corporation Tax rate unchanged
Capital Acquisitions Tax up from 30% to 33%
Capital Gains Tax up from 30% to 33%
DIRT up from 30% to 33%
Other
Film Tax Relief Scheme to be extended to 2020
Find out about the Budget 2014.
