Michael Noonan has delivered Budget 2016.
The last Budget of the current Government shows Ireland will be fastest growing economy in Europe this year but the Finance Minister warned the recovery is fragile and not yet felt inside every door – Top priority of budget is to keep recovery going.
From January 1, the Universal Social Charge entry threshold increases from €12,012 to €13,000.
Around 42,500 workers will be removed from paying USC completely
USC Rates will be cut from 1.5 per cent to 1 per cent, from 3.5 per cent to 3 per cent, from 7 per cent to 5.5 per cent.
People with higher incomes will not receive any benefit on their income above €70,000 but will benefit on the portion of their income below this level.
In essence Michael Noonan says Budget 2016 will give each worker an extra week’s wages.
The price of cigarettes is going up by 50 cents to €10.50. It comes into effect at midnight.
The Government is to postpone the revaluation date for the Local Property Tax from 2016 to 2019.
There’s no change to 9 per cent VAT rate for tourism and hospitality industry.
Commercial motor tax rates are to be simplified, with the 20 existing rates to be replaced by five new rates, ranging from €92 to €900.
There’ll be an increase to the home carer tax credit of 190 euro bringing it to €1,000.
For employer PRSI, the entry point to the top rate of 10.75% is being increased by €20 per week to €376 per week.
Capital Acquisitions Tax which broadly applies to transfers between parents and their children, is being increased from €225,000 to €280,000.
The 5 per cent stamp duty on debit and ATM cards is to go and will be replaced with a 12 cent per ATM transaction fee.