The first budget of the minority Government is currently to be delivered.
Tax cuts and spending increases costing over 1.2 billion euro will be unveiled by Michael Noonan and Paschal Donohoe in the next hour.
Refresh to see how Budget 2017 will effect you:
After 2018 Government will set aside up to € 1bn annualy as a rainy day fund
GDP growth of 4.2% in 2016 and 3.5% in 2017
Fiscal Space – Spending increases and tax cuts of 1.3 billion euro
Tourism: Special 9% VAT rate for the hospitality sector will remain for 2017
Eoghan O’Mara Walsh Chief Executive at Irish Tourist Industry Confederation, says it’s good news:
Finance Minister Michael Noonan says Ireland is recovering well from the recession:
Farming – Special scheme to allow farmers experiencing exceptionally poor year “step out” of income averaging
New loans to farmers with interest rate below 3% to improve cash flow and reduce cost of short term borrowings.
Fishing Industry – New income tax credit for fishermen of € 1,270
Housing – New help to buy scheme for first time buyers 5% up to 400,000 euro – value of 20,000 for NEW homes
Finance Minister Michael Noonan explains how the help to buy scheme will help first time buyers:
Home renovation incentive scheme to be extended by two years
Interest ‘deductability’ to increase from 75% to 80% in 2017 for those who let to social housing tenants
Rent a room income ceiling to be increased by 2,000 euro a year to 14,000.
Personal Taxes
335 million to cut the lower three rates each by half a percent. (new rates will be 0.5%, 2.5%, 5.0%)
Increase in entry threshold for USC by 104 euro to take those on minimum wage outside of the top USC rates
Finance Minister Michael Noonan explains:
Mortgage Interest Relief will be extended from December 2017 to 2020 – full details in Budget 2018
Deposit Interest Retention Tax to be cut by 2 percentage point each year for next four years – from 41% now to 33% in 2020
Home Carer’s Credit to increase by 100 euro to 1,100.
Self-employed tax credit to increase by 400 euro to 950 euro (147,000 people will benefit)
CAT on inheritance or gifts from parents to children increased by 30,000 to 310,000
Restates that Ireland’s 12.5% corporation tax rate will not be changed
Vehicle Registration Tax
Extending relief from Vehicle Registration tax on electric vehicles for five years.
Extending relief on VRT on hybrids by a further two years
Sugar Tax
Confirms that a sugar tax will be introduced with the UK in April 2018 – consultation process to run until next January
Cigarettes
Excise on tobacco to be increased – 50 cent on a pack of cigarettes from midnight tonight (Tuesday)
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