Ireland’s 2011 Budget: Main Spending, Taxation Measures
Following are the key measures in Irish Finance Minister Brian Lenihan’s 2011 Budget, announced in the parliament in Dublin today.
-- No reduction in the state pension in 2011 -- Working-age pension payment to be reduced 4 percent -- Child benefit to be reduced by 10 euros, with additional 10- euro cut for a third child -- Capital programme will be about 3.6 percent of GNP in 2011. -- Prime minister’s salary will be reduced by more than 14,000 euros a year -- Ministers’ salaries will be reduced by more than 10,000 euros a year -- Government to apply maximum salary rate of 250,000 euros in the public sector -- Public service pensions above 12,000 euros a year will be reduced by an average of 4 percent -- Income Levy and Health Levy to be abolished; replaced with a single Universal Social Charge -- Employee PRSI contribution ceiling removed -- Value of tax bands and credits reduced by 10 percent -- Maximum weekly social- welfare payment for people of working age will be cut by 8 euros from January. -- The base for Capital Acquisitions Tax broadened by reducing the tax-free thresholds by 20 percent -- Deposit Interest Retention Tax rate on ordinary deposit accounts increased by 2 percent to 27 percent and on longer-term deposit accounts by 2 percent to 30 percent -- No change to the 12.5 percent corporation tax rate -- Stamp duty: a flat rate of 1 percent on all residential property transactions up to a value of 1 million euros, with 2 percent applying to amounts above 1 million euros -- Air-travel tax to be reduced to 3 euros from March 1. Government will review the tax in 2011. -- Excise will be increased by 4 cent per liter on petrol and 2 cent per litre on auto-diesel -- Legislation to facilitate further burden-sharing by subordinated bondholders will be submitted to the parliament next week
SOURCE: Irish Finance Ministry
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