Emergency Budget April 2009
Posted On: 08-04-2009
GNP declined by 3% last year. It is predicted to decline by 8% in 2009.
Incomes are expected to decline by 4.25% in 2009.
Reductions in all allowances for TDs (except for mileage which was previously reduced) along with other changes to remuneration structure for ministers and TDs.
The introduction of a retirement scheme for public sector employees aged over 50.
No reduction in social welfare rates in current budget.
Job seekers allowance for those under 20 halved.
Rent allowance reduced.
Child benefit will be means tested or taxed in the next Budget.
Changes in Early Childcare Supplement regime.
12.5% corporate tax rate to be retained.
Tax relief for interest for investors in respect of residential properties reduced to 75% of interest expense.
20% rate for profits from dealing in and developing residential land is being abolished.
Property-related capital allowances schemes relating to healthcare sector will be abolished
Mortgage relief will only be available for first 7 years.
CGT rate to be increased to 25% with immediate effect
CAT rate to be increased to 25% with immediate effect
Certain loans will be transferred to the National Asset Management Agency with an estimated maximum of €80 - 90 billion.
Agency will ensure that borrowers satisfy full legal obligations in relation to the loans transferred.
Capital expenditure fixed at €7.3 billion for 2009, €6.6 billion for 2010, €5.5 billion for 2011, €6 billion in 2012 and 2013.
R&D incentives to be introduced to reach 2.5% on GNP by 2013.
Regime to be introduced to allow tax relief for the cost of acquiring intangible assets.
Stamp duty trade-in scheme to be introduced.
CAT thresholds reduced by 20%
DIRT is to increase to 25% and 28% (for certain deposits)
Income levy increases as follows
2% over €15,028
4% over €75,036
6% over €174,980
An increase in PRSI ceiling to €75,036
Health levy will double to 4% and 5%
The role of the Central bank will be reformed.
A National Asset Management Agency will be established.
The standard tax rate of 20% has not been changed.
The higher tax rate of 41% has not been changed.
No change in tax credits.
The excise tax on diesel will be increased by 5 cent per litre (including VAT) with effect from midnight on 7 April 2009.
The excise duty on a packet of 20 cigarettes will be increased by 25 cent (including VAT) with effect from midnight on 7 April 2009.
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