Earlier this afternoon, Michael Noonan and Brendan Howlin took to the floor of the Dáil and announced the main measures for Budget 2015.
Here were the main points of those speeches:
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- Increases in child benefit, a partial restoration of the Christmas bonus scheme, changes to the entry level of the Universal Social Charge and two new USC rates for higher earners and the self employed.
- They're some of the main features of Budget 2015 which for the first time in seven years sees no new spending cuts or overall tax increases.
- The entry level at which the USC is paid will be raised to €12,000, and a new 8% USC rate for anyone earning more than €70,000. A new 11% rate for the self-employed earning more than €100,000 will also be introduced.
- The standard income tax rate band will increase by €1,000 and the higher income tax rate will drop from of 41% to 40%.
- There will be an increase of €5 in child benefit for all children, the living alone allowance has been raised by €9 per week while a 25% Christmas bonus scheme for pensioners and those on social welfare is being introduced.
- Tax refunds to offset water charges are on the way and the household benefits package is also to be increased by €100 to alleviate water charge costs.
See also:
Michael Noonan's speech in full
Brendan Howlin's speech in full
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- The popular 9% VAT rate on hospitality services is being maintained. While the 'old reliables', will see no increase on the price of alcohol, however there will be a 40c hike on the price of cigarettes with a pro rata increase on other tobacco products from midnight tonight.
- Petrol and diesel prices will remain unchanged as will motor tax and VRT.
- Some €2.2 billion has been earmarked for social housing.
- A new package on corporate tax has also been unveiled. It will eliminate the so-called 'double Irish', which allows foreign companies to reduce their tax liabilities, for new entrants from January, however existing schemes will remain in place until 2020.
- Prospective first-time buyers are to be given a concession to assist in the saving of a deposit. Minister Noonan also announced they will have DIRT tax refunded and he says he expected the banks to launch new savings products specifically aimed at first-time buyers over the coming months.
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