Menu
24/11/2010
Ireland Slashes Welfare And Minimum Wage
Ireland's 'bone deep' austerity budget is living up to its promises, with a cut of almost €3 billion to welfare, a slashing of the minimum wage by €1 per hour and the loss of 25,000 public sector jobs.
The 140-page plan, published today, details the Government's plans to make €15 billion of savings by 2014.
The document contains a litany of highly controversial measures, including new levies on property, a hike in the basic rate of income tax and VAT as well as a 30% rise in university registration fees.
Although not all the details of the welfare cuts will be spelled out until next month's Budget, it is understood the €2.8 billion chop will be made primarily through cuts to unemployment and child benefits.
The new property tax, called a site value tax is expected to cost homeowners up to €200 by 2014, while more workers will pay income tax by the same period as the threshold for income tax falls to €15,300 a year from its current level of €18,300.
Today's budgetary document said: "The measures contained in the plan will broaden the tax base by bringing in more taxpayers into the tax net. These changes will bring us back to an income tax structure last seen in 2006."
The document acknowledged tax and expenditure measures contained in the plan would negatively affect the living standards of citizens in the short-term, but said: "Postponing these measures will lead to greater burdens in the future for those who can least bear them, and will jeopardise our prospects of returning to sustainable growth and full employment."
Announcing the report during a press conference in Dublin today, Brian Cowen said agreements with the International Monetary Fund for the bailout are based on the stipulation that €6 billion of the total €15 billion cutbacks will be implemented in 2011.
Other measures include a reduction of public sector pay bill by €1.2 billion by 2014, abolition of tax reliefs worth €755 million, and the introduction of water metering by 2014.
"Those who can pay the most will pay most, but no group can be sheltered," the report added.
The report said the measures would help dispel uncertainty and reinforce the confidence of consumers, businesses and of the international community, however international trading is still reacting negatively.
(DW/BMcC)
The 140-page plan, published today, details the Government's plans to make €15 billion of savings by 2014.
The document contains a litany of highly controversial measures, including new levies on property, a hike in the basic rate of income tax and VAT as well as a 30% rise in university registration fees.
Although not all the details of the welfare cuts will be spelled out until next month's Budget, it is understood the €2.8 billion chop will be made primarily through cuts to unemployment and child benefits.
The new property tax, called a site value tax is expected to cost homeowners up to €200 by 2014, while more workers will pay income tax by the same period as the threshold for income tax falls to €15,300 a year from its current level of €18,300.
Today's budgetary document said: "The measures contained in the plan will broaden the tax base by bringing in more taxpayers into the tax net. These changes will bring us back to an income tax structure last seen in 2006."
The document acknowledged tax and expenditure measures contained in the plan would negatively affect the living standards of citizens in the short-term, but said: "Postponing these measures will lead to greater burdens in the future for those who can least bear them, and will jeopardise our prospects of returning to sustainable growth and full employment."
Announcing the report during a press conference in Dublin today, Brian Cowen said agreements with the International Monetary Fund for the bailout are based on the stipulation that €6 billion of the total €15 billion cutbacks will be implemented in 2011.
Other measures include a reduction of public sector pay bill by €1.2 billion by 2014, abolition of tax reliefs worth €755 million, and the introduction of water metering by 2014.
"Those who can pay the most will pay most, but no group can be sheltered," the report added.
The report said the measures would help dispel uncertainty and reinforce the confidence of consumers, businesses and of the international community, however international trading is still reacting negatively.
(DW/BMcC)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
15 November 2010
O'Keeffe 'Rules Out' Corporation Tax Change
Ireland's highly competitive 12.5% corporation tax rate will not change in next month's Budget, according to the Minister for Enterprise. Batt O'Keeffe is to make the announcement tonight to a group of 38 leading firms based in the United Kingdom at an IDA Ireland dinner in the Irish Embassy in London this evening.
O'Keeffe 'Rules Out' Corporation Tax Change
Ireland's highly competitive 12.5% corporation tax rate will not change in next month's Budget, according to the Minister for Enterprise. Batt O'Keeffe is to make the announcement tonight to a group of 38 leading firms based in the United Kingdom at an IDA Ireland dinner in the Irish Embassy in London this evening.
26 October 2021
Baker Tilly Moore Announces Two Key Appointments
Leading accountancy and advisory firm Baker Tilly Mooney Moore has made two appointments to the Taxation Department amid a period of sustained growth and development. Eugene Moore joins the firm as Tax Manager, while Naomh McGrann has taken on the role of Tax Technician.
Baker Tilly Moore Announces Two Key Appointments
Leading accountancy and advisory firm Baker Tilly Mooney Moore has made two appointments to the Taxation Department amid a period of sustained growth and development. Eugene Moore joins the firm as Tax Manager, while Naomh McGrann has taken on the role of Tax Technician.
22 March 2013
Budget R&D Tax Incentives Welcomed
Invest Northern Ireland has welcomed the R&D measures announced by the Chancellor George Osborne as part of the Budget statement. Improvements to the R&D tax credit system and the new Patent Box regime are part of wider government measures to encourage investment in R&D and help innovative businesses to grow.
Budget R&D Tax Incentives Welcomed
Invest Northern Ireland has welcomed the R&D measures announced by the Chancellor George Osborne as part of the Budget statement. Improvements to the R&D tax credit system and the new Patent Box regime are part of wider government measures to encourage investment in R&D and help innovative businesses to grow.
04 May 2011
Dáil Probes EU Plans For Common Tax System
An interim Dáil Committee will meet with officials from the Department of Finance today, to consider whether a new EU proposal for a consolidated system of calculating the tax base of businesses operating in the EU complies with the principle of subsidiarity. The meeting will take place at 2.30pm in Leinster House.
Dáil Probes EU Plans For Common Tax System
An interim Dáil Committee will meet with officials from the Department of Finance today, to consider whether a new EU proposal for a consolidated system of calculating the tax base of businesses operating in the EU complies with the principle of subsidiarity. The meeting will take place at 2.30pm in Leinster House.
01 March 2006
Employers reminded to stop paying Working Tax Credit
HM Revenue & Customs (HMRC) have reminded employers that they must stop paying Working Tax Credit via their payroll by the end of this month. Since its introduction in April 2003, Working Tax Credit has been paid via employers to supplement the wages of people on low incomes.
Employers reminded to stop paying Working Tax Credit
HM Revenue & Customs (HMRC) have reminded employers that they must stop paying Working Tax Credit via their payroll by the end of this month. Since its introduction in April 2003, Working Tax Credit has been paid via employers to supplement the wages of people on low incomes.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
