Roscommon Daily has rounded up the main points from today’s budget in easy to follow bullet points.
More Budget 2017 detail will follow from the individual Ministers throughout the afternoon.
– €5 increases to all weekly social welfare payments from March 2017 announced. However, those Under 26 will only see an increase of €2.70 to their Unemployment Payment.
– 85% of the “Christmas bonus” will be paid this year
Farming and Rural Development
– GLAS Scheme funding increased to 211 million.
– €25 million for a new animal (Sheep) welfare scheme.
– 500 new places on the Rural Social Scheme.
– Farm Assist will increase
– A low-cost (under 3%) flexible loan fund will be established.
– Increase in Farmers VAT Rate to 5.4%
– Farm Restructuring Relief Scheme extended to end of 2019.
– Option for farmers to “step out” of income averaging tax system if they have a bad year.
Food and Drink
– 50 cent tax added to cigarettes; major brands will now cost more than €11 a packet.
– A sugar tax on soft drinks to be introduced in April 2018.
– Tourism and hospitality VAT rate to stay at 9%.
– No changes to excise duty on Alcohol
Universal Social Charge
– Cuts of 0.5% to the three lowest rates of the Universal Social Charge.
– All children in receipt of domiciliary care allowance to be covered by a Medical Card.
– Carers’ credit is to be increased to €1,100.
– €25 cap on prescription charges for people over 70 will be reduced to €20 from March 2017.
– No changes to excise duty Diesel or Petrol
– Deposit Interest Retention Tax to be reduced by 2% every year for the next four years (from 41% to 33%)
– Relief from VRT tax on electric vehicles to be extended for another five years
– €319 million allocated for local and regional roads
– 4,500 extra Gardai, Nurses and Teachers to be hired. Figure includes 800 Gardai and 500 Civil (Admin) staff.
– Sports Capital Programme to resume in 2017
– €15 Million towards National Broadband Plan
– Early Childhood Care and Education Scheme extended
– Single Affordable Childcare Scheme to be established
– A help-to-buy scheme for first-time buyers will offer a Tax rebate of up to €20,000 on new builds. This has received a negative reaction with many saying that developers will add €20,000 the price of houses
– Mortgage Interest Relief scheme will be extended beyond 2017
– Capital Acquisitions Tax threshold increased
– Home Renovation Incentive Tax Credit to be extended to 2018
– Rent-a-room relief to be increased to €14,000
– Increase in Mortgage Interest Relief deductibility for Landlords from 75% to 80%.
– Increase in Housing Assistance Payment Scheme and Rent Supplement
– €1.2 billion to take the Housing Crisis
– Allocations for Renewable Heat Incentive and Better Energy Grant schemes
– Capital Gains Tax for entrepreneurs will be reduced from 20% to 10%.
– Income Tax Credit for Self Employed people will increase to €950.