Ireland’s 2016 budget draft focuses on tax cuts

Dublin, Oct 14 (IANS) The Irish government has announced a series of tax cuts and spending increases worth $1.7 billion in its 2016 budget proposals.

Every worker or income tax payee will benefit from a change to the Universal Social Charge (USC), Xinhua quoted Finance Minister Michael Noonan as saying while delivering the new year’s budget draft in parliament on Tuesday.

The USC is a new tax on income which began in 2011. It is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions.

Noonan said he would reduce the three lowest rates of USC from 1.5 percent to one percent, 3.5 percent to three percent and seven percent to 5.5 percent.

He said the government was increasing the entry threshold to USC from just over 12,000 euros to 13,000 euros.

Noonan said there was just one tax increase, a rise in the price of a packet of cigarettes by 50 cents with similar increases on other tobacco products.

Meanwhile, Brendan Howlin, minister for public expenditure and reform, said the new statutory minimum wage will rise from 8.65 euros to 9.15 euros an hour from January 1, 2016.

Howlin also announced an increase of five euros per week in the pension.

The Christmas bonus for people in receipt of social welfare will be increased to 75 percent and the fuel allowance was going to rise by 2.5 euros a week, said Howlin.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here