Budget 2023: What It Means For You

Tuesday, 27 September 2022 17:46

The Government has delivered the largest budget in the history of the state in response to a historic cost of living crisis.

The biggest changes to income tax in more than a decade have been confirmed as part of Budget 2023.

People won't start paying the higher rate of tax until they earn 40,000 euro - meaning 800 euro a year back into the pockets of those earners.

Finance Minister Paschal Donohoe has also confirmed the creation of a Vacant Property Tax charged at three times the local property tax rate.

In a blow to the hospitality sector the reduced 9 per cent VAT rate will be scrapped from February 2023.

While the Government has confirmed the carbon tax increases planned for next month will go ahead but will be offset by scrapping the National Oil Reserves Levy.

The Finance Minister is introducing a concrete blocks levy to pay for Mica redress at a rate of 10% on some concrete products from April 2023.

A packet of 20 cigarettes will go up by 50 cent

Pascal Donohue says the public finances have recovered well since the Covid lockdowns, but remain vulnerable to other issues like the war in Ukraine and Brexit:

Excise rate reductions on petrol, diesel and Marked Gas oil will continue until the end of February.

Portlaoise Motoring Journalist Bob Flavin says it's now on petrol stations to implement these savings as soon as possible:

Over 200 million euro has been allocated to ease the impact of Brexit on farmers and food processors.

IFA President, Toomevara's, Tim Cullinan says although it's helpful, farmers will still have to deal with huge price hikes in fertilizer and fodder.

The government has confirmed a new free school book scheme for all primary school pupils will be introduced in September 2023.

Over half a million pupils are set to benefit.

But Fergal Cormican manager and co-owner of Cormican's school book shop in Athlone, is disappointed with the lack of consultation with retailers:

The discounted 9 per cent VAT rate for hospitality is expected return the pre-pandemic level of 13.5 per cent in February.

Manager of the County Arms Hotel in Birr and Midlands Rep for the Irish Hotels' Federation, Barry Kennedy is disappointed by the move.

He says now is not the time for increasing costs:

1,000 new gardaí are set to be recruited next year, along with 430 civilian staff.

200 new recruits will enter Templemore every three months in the coming year.

Conor Staunton represents Westmeath in the Garda Representative Association - he welcomes the extra boots on the ground but says the devil will be in the detail: