Budget 2009 - Main points
Budget 2009 - Main points

The main points of the 26-County state budget for 2009, presented this afternoon by Minister for Finance Brian Lenihan,

  • 1% personal income levy on all income up to 100,000 Euro
  • 2% personal levy on all income over 100,000 Euro
  • Increase in standard rate tax band of 2,000 Euro for a married couple
  • Increase in standard rate tax band by 1,000 Euro for a single person
  • Tax relief on medical expenses capped at the standard rate
  • Increase of 2% in capital gains tax rate

  • Standard rate of Vat to increase by 0.5% to 21.5% from December 1st
  • Duty on cigarettes to increase by 50 cents for a packet of 20
  • Duty on wine to increase by 50 cents a litre
  • Air travel tax of 10 Euro per passenger, 2 Euros for shorter journeys
  • Duty on petrol to rise by 8 cents a litre
  • Motor tax to rise between 4% and 5%
  • Stamp duty on cheques to rise from 30 cents to 50 cents per cent
  • Top rate of commercial property stamp duty cut from 9% to 6%
  • Levy of 200 Euros for car parking provided by employers in major urban areas

  • Automatic entitlement to a medical card for over 70s to be abolished
  • 400 Euros annual grant for over 70s who do not qualify for automatic medical card
  • Child benefit for 18-year-olds to cease from 2010
  • Child benefit to be halved for 18-year-olds from January 1st
  • Family income supplement thresholds to rise by 10 Euro per week per child
  • Fuel allowance increased 2 Euro a week to 20 Euro per week
  • Lowest level of social welfare payment to rise to 204.30 Euro per week
  • Pension to rise by 7 Euro per week
  • Carer’s benefit and carer’s allowance to rise by 6.50 Euro per week

  • 200 Euro levy on second and holiday homes
  • 1.65 billion Euro to be spent on housing programmes in 2009
  • First-time buyers tax relief up from 20% to 25% in years 1 and 2
  • 5 million Euro for warmer homes scheme

  • Government to reduce the number of state agencies by 41
  • Decentralisation programme deferred until 2011, pending a review
  • Ministers and some senior civil servants to take 10% pay cut
  • Targeted early retirement scheme for the HSE
  • 889 million Euro investment for capital education projects

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    © 2008 Irish Republican News