Irish Republican News · October 11, 2016

Budget 2017 - main points

 

The following are the main changes in 26 County taxation and spending for the 2017 fiscal year, as announced in their budget speeches by Minister for Finance Michael Noonan and Minister for Public Expenditure Paschal Donohoe this afternoon.

 

- A 5 per cent tax rebate on house prices up to 600,000 euro for first time buyers, to increase demand for new housing.

- The three lowest rates of the Universal Social Charge (USC) are being reduced by 0.5 per cent.

- Deposit Income Retention Tax (DIRT), the tax on savings interest, is to be gradually reduced from 43 per cent to 41 per cent over three years.

- All parents with children aged between six months and three years in childcare will be entitled to state subsidies, which will not be means tested.

- 9% VAT sales tax rate for tourism and hospitality industry to be retained

- There will be a tax credit for fishermen of 1,270 euro

- There will be a 100 euro increase in Home Carers’ Credit to 1,100 euro

- The tax credit for self-employed to be increased by 400 euro to 950 euro

- The income ceiling for landlords in the rent to room scheme is to be increased by 2,000 euro.

- Capital Acquisitions Tax on gifts from parents to children to be increased by 30,000 euro to 310,000 euro.

- Excise on a pack of 20 cigarettes to increase by 50 cent.

- A tax on sugar-sweetened drinks to be introduced in April 2018

- About 1 billion euro a year to be put aside from 2018 onwards for ‘rainy day fund’.

 

- An increase of 1.9 euro billion in capital spending

- A reduction in the 25 euro cap on prescription charges for the over 70s to 20 euro, with effect from March 1.

- An additional 15 million euro for consultant doctors to try to reduce hospital waiting lists

- An additional 105 million euro for landlords in housing assistance payments for social housing

- An extra 28 million euro allocated to developers to provide sheltered housing

- Public service workers to get additional 290m euro for pay increases under the Lansdowne Road Agreement

- Additional funds to employ 2,400 more teachers and 800 more Gardai police

- There will be a 5 euro increase from March 1st in the State pension and other social welfare payments, subject to passage of the Social Welfare bill.

- The Christmas bonus for welfare recipients to go up by 10% of the weekly payment, for this year only

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