the Irish Budget is frist in the Eu Zone for 2009 figgers , it been watch by Eu governments to incress here coppers
The run down
1 .Indirect Tax (VAT ARE IVA)
The higher rate of VAT of 21% is to increase by 0.5% New rate 21?% from 1 December 2008
This is effecitve from 1 December 2008. The lower rates of VAT shall remain unchanged.
2. An air travel tax for departures from Ireland of ?10 is to apply. This will be ?2 for shorter flights. Effective from 30 March 2009.
3. Income Tax
Standard tax rate band increases by ?1000 for a single person; and ?2000 for married couple with two incomes.
4. Income Levy
Government proposes an income levy of 1% for all income up to ?1,925 per week (i.e. up to ?100,000 per annum) and 2% on the balance above this amount (i.e. over ?100,000 per year).
This income levy shall be kept under review in light of ongoing economic climate.
5. Government Ministers to take a 10% pay cut. Also other Public Servants in senior management positions to consider whether it is appropriate in their circumstances to take a pay cut.
6. DIRT increased to 23% on ordinary deposit accounts and 26% on certain other savings products (to be announced).
7. The rate of Capital Gains Tax is to increase by 2% to 22%. This measure will be subject to ongoing review.
8. petrol to go up by 8pm
9. cigarettes will go up by 50 cent per packet of 20 8.000euros from midnight to night
10. bottle of wine by 50 cent Low Alcohol Beverages I also propose to reduce excise on low alcohol beer and cider to encourage the safer use of alcohol and to make a contribution over time to reducing death and injury on our roads.
11. Betting Tax
Betting tax is being increased from 1% to 2% yielding ?40 million in a full year. I am also making a reduction in the allocation for the Horse and Greyhound Racing Fund, the details of which can be found in the Summary of Budget measures.
13. Mortgage Interest Relief
In relation to mortgage interest relief, from 1 January 2009, the rate of tax relief for first time buyers will be increased from 20% to 25% in years 1 and 2 of the mortgage and to 22.5% in years 3, 4 and 5. This change will benefit first-time buyers who purchased since 1 January 2005. The rate for years 6 and 7 will remain at 20%. First time buyers relief ends after year 7. To fund this change, the relief for non-first time buyers will be reduced from 20% to 15%. This rebalancing makes for a fairer system and helps those buyers with the biggest financial exposure and those facing falling property values. Circumstances can change of course and this rating structure is not set in stone. It is very much tailored to current market conditions.
GNP will contract next year by 1%, with GDP contracting by about ?%;
unemployment will continue to rise, averaging 7.3% for the year as a whole and
inflation will ease to 2.5% on average for the year.
This Government has dealt decisively with the rapid and sharp downturn in our economy.
In July, we brought forward a package of savings which will net the Exchequer ?1 billion next year
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