Money: Irish Budget 2012 The Last of the Cuts..Simpified! - Day 2
BUDGET 2012 - DAY 2
Day two and Minister for Finance Michael Noonan defended his "tough" budget on RTÉ's 6.1 News explaining that the Government tried as far as possible to impose the burden on those who could shoulder it the most. Here's the reality...
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
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 for those on mortgage interest supplement and those in unfinished housing estates
Stamp Duty:
No change to stamp duty on residential property
Commercial property rate lowered from 6% to 2%
Farming:
Lower commercial stamp duty rate will also apply to farmland
50% stock relief on registered farm partnerships
100% rate for certain young trained farmers
Incentives for timely transfer of farms before the current owners reach the age of 66
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%
Corporate tax: Exemption for start-ups extended
Research & Development
€100,000 of expenditure can be used as tax credit
Companies can use R&D credits to reward key employees
GDP: 1.3% growth forecast in 2012
Special Assignee Relief Programme: Initiative to attract key staff
50% Employer PRSI pension relief abolished
Approved Retirement Funds: Tax up 1% to 6% on transfer of funds
Gambling: Legislation planned on internet betting