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Summary of Budget 2013

A breakdown of this year's budget

Summary of Budget 2013
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John Keogh
16:23 Wednesday 5 December 2012

Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin have been presenting Budget 2013 to the Dail.

Central to the budget was the much flagged property tax which will be self-assessed and will take effect from the middle of next year.

It will be charged at 0.18% of the value of your home while a so-called mansion tax for houses valued at over €1 million will also be introduced at a rate of 0.25%.

Local authorities are to be given the power to vary the tax by 15% above or below the national rate to better match their funding needs. 

But there is bad news if you own more than one house as next year you will have to pay the second-home charge along with the new property tax. 

The second-home charge will be phased out in 2014.

There are to be changes to PRSI contributions with the €127 weekly tax free allowance to be scrapped with PRSI being paid on all income instead.

Landlords and people with shares will not escape either as PRSI is now to be charged on rental income and share earnings.

Pensioners are also in the firing line with those with high incomes to be hit with a 3-point increase in the Universal Social Charge (USC) on incomes over €60,000.

Pensioners telephone, electricity and gas allowances are also being reduced.

But are to be no cuts to rent or fuel allowances and the Minister is not increasing excise duty on petrol or diesel.

However he is targeting the other old reliables of drink and cigarettes. 

And those who like to drink wine are going to have to pay €1 per bottle.

Public Expenditure

Savers will see DIRT on interest go up to 33% from 30% and other capital taxes such as capital gains tax are also being increased.

As widely predicted child benefit is to be cut by €10 per month but there are no cuts to weekly social welfare payments. 

Medical card holders will see the price they have to pay for a prescription doubled to €1.50. 

Motor tax is going up as is VRT, however petrol and diesel have been spared any rise. 

In the classroom pupil teacher ratios are to rise in fee paying schools by an extra 2 pupils to 1 teacher while 3rd-level registration fees are also going up by €250.

Changes to TDs expenses are also on the way. 

They will soon have to provide receipts for all their expenses, the overall expense budget is to be cut by 10%, there is to be a 10% cut in the party leaders allowance and the severance pay to out-going ministers is to be abolished.

There is to be a clampdown on sick pay in public service.

Minister Brendan Howlin says Ireland and her people will prosper again but he has admitted having his doubts about that in the recent past.

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