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.
Social Welfare
– €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.
Healthcare
– 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.
Other taxes
– 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
Funding
– €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
Young Families
– Early Childhood Care and Education Scheme extended
– Single Affordable Childcare Scheme to be established
Housing
– 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
Business
– Capital Gains Tax for entrepreneurs will be reduced from 20% to 10%.
– Income Tax Credit for Self Employed people will increase to €950.