The Minister for Finance has announced a 520m tax package in Budget 2022.
That means the rate at which people pay the higher rate of tax is being increased by 1,500 euro.
While the personal tax credit, employee tax credit and earned income credit is being increased by 50 euro.
The minimum wage is also increasing by 30 cent to 10.50 per hour, while a 7 euro 50 increase in the carbon tax has been announced. .
The reduced VAT rate of 9% for hospitality sector will remain in place until August 2022.
Excise on a 20 pack of cigarettes going up 50c with a pro rata increase on other tobacco products.
Elsewhere, the Employment Wage Subsidy Scheme has been extended in a graduated rate until 30th April 2022.
– No change in October and November
– Businesses still availing on 31st Dec 2021 will get it until 30th April
– In Dec, Jan and Feb a two rate structure of 151.50 and 203 will apply
– March and April 2022 a flat rate of 100 euro will be in place. Reduced employers PRSI will no longer apply.
– Scheme closes to new entrants from 1st Jan 2022
Employment is expected to exceed pre-pandemic levels within 2022 – with more than 400,000 jobs to be added to economy between this year and next.
Employees will be able to claim back 30% of vouched expenses for heat, electricity and broadband for working from home.
Airlines
Tax arrangements for international air crews under Section 127B of income tax code will change.
Housing
A Zoned Land Tax will be introduced applying to land which is zoned for housing and serviced but is not being developed
There will be a 2 year lead in time for land zoned before Jan 2022 and three years for land zoned after Jan 2022. The rate will be 3% of market rate.
It will operate on a self assessment basis and have exemptions and will replace the vacant sites levy.
The Help to Buy scheme will be retained for 2022 at current rates and reviewed next year
Landlords
Three year extension to pre-letting expenses relief for landlords
Climate
7.50 increase in the carbon tax which will be reinvested in social welfare measures on fuel poverty and a just transition.
Modest tax disregard for personal income to households who sell surplus electricity from microgeneration back to the grid.
VRT
A revised motor tax system
– 1% increase in VRT for bands 9-12
– 2% increase for bands 13-15
– 4% increase for bands 16-20
Extension of 5,000 euro relief for Battery Electric Vehicles to end of 2023.
Fossil fuel equipment will no longer apply for Accelerated Capital Allowance
Aims to support transition to lower emission fuels in heavy duty land transport
Scheme extended for gas vehicles and hydrogen powered one
Agriculture
Various farming stock relief to continue
General stock relief will continue until end of 2024
Relief for young trained farmers to continue
Brewers
Signals next year’s budget will contain 50 per cent excise relief for independent small producers of cider and other fermented drinks
Business
– Employment Investment Incentive scheme to be extended for three years and will be opened up to more investment funds
– Relaxation of the rules around the capital investment window for investors
Removing 30 per cent expenditure rule
Corporate Tax
Extension of Corporate Tax relief to certain start ups until end of 2026
Gaming
New tax credit for the digital gaming sector of 32% up to a limit of 25m on the design, production and testing of a game
Bank
The bank levy is being extended
Ulster Bank and KBC will be excluded from the charge as they’re leaving the market
Expected yield of 87m
New tax credit for the digital gaming sector of 32% up to a limit of 25m on the design, production and testing of a game
Pandemic Bonus
Proposals on a pandemic bonus to be brought forward in the coming weeks
Recovery
Recovery funding of 286 million euro
– 90m aviation package
– 30m for protection and renewal of roads
– 50m ICT grants for schools
– 60m for extension of commercial rates waiver for Q4 targeted at hospitality, arts and tourism
– 30m for health for areas hit hard by pandemic – palliative, mental and disability
Housing
20bn over the next five years being made available
6bn next year to Housing, 15.6% up on 2021
174m for direct delivery of 4,000 affordable homes next year
Water
1.6bn being invested in water services next year
Defective Blocks
New redress scheme to be announced in coming weeks
Health
1bn for the health service in 2022 for Covid health measures. 200m of that will be held in a central contingency fund.
Includes 500m for testing and tracing, vaccine booster campaign and PPE
Core health spending is to increase by 1bn euro to a record 20.38bn. Including capital and Covid provision it’s 22.2bn
10.5m for 19 extra ICU beds in 2022 bringing total to 340. 33% rise since start of pandemic
250m fund to tackle waiting lists
Extension of free GP care to children aged 6 and 7
Lowering of drug payment scheme threshold to 100 euro
Improvement to dental access
Measures to reduce cost of hospital charges for children
30m euro for new drugs
Women’s Health package of 31m
– free contraception for women aged 17-25 from next August
– progress on period poverty
– more funding for sexual assault treatment units
Disability
105m for disability services
37m for expansion of mental health services
30m for national strategies including Cancer Strategy
Health Staff
8,000 new posts across health system
Childcare
716m investment in childcare in 2022
– 78m extra for National Childcare Scheme
– Linked to no increases in costs for parents
New funding stream for 4,700 childcare providers from Sep 2022 on at a cost of 69m to improve conditions for workers
Extend NCS to children under age of 15 from Sep 2022 at cost of 5m
Direct Provision
28m for ending direct provision in line with white paper
Apprenticeships
More funding for apprenticeships particularly in construction
NDP
11.1bn in 2022 for the National Development Plan
Transport
– 3.4bn for transport
– 1.4bn to develop public transport including money for BusConnects, MetroLink and DART+
– EV grants
Youth
– 25m for a new youth travel card
– anyone aged 19-23 will get 50% discount on public transport
Travel
– 360m for active travel and greenways
Aviation
– 60m for aviation for a number of capital and grant schemes
Maritime
108m for maritime funding
Education
9.2bn for Education
– hiring 980 teachers
– 1,165 new SNAs
School Transport
– 30m for school transport
Schools
– 350 additional teacher posts to reduce class sizes by 1
– 18m to increase number of DEIS schools
– 4m to increase allocation of hot school meals
CAO
3,320 additional CAO places as part of a 68m investment in higher ed
35m for cost of going to college
The SUSI grant will be increased by 200 euro and changes to who can get it
200 euro fee for post leaving cert courses will be scrapped
Social Protection
558m package
5 euro a week for working age welfare payments including 5 euro for young jobseekers
Children
Increase in Qualified Children rate for u12s by €2 and over 12s by 3 euro
Pension
5 euro a week increase in state pension
3 euro a week increase to living alone allowance
Parents
Parents benefit increase by 2 weeks to 7 weeks from July next year
Allowance
10 euro on the back to school allowance
10 euro on the working family payment
Domiciliary Care Allowance from 3 to 6 months
rate of wage subsidy scheme for disabilities will rise by a euro a week
Carers
increase in income disregard for carers allowance
earnings limit on disability allowance from 350 to 375
Parents
Parents benefit increase by 2 weeks to 7 weeks from July next year
Allowance
10 euro on the back to school allowance
10 euro on the working family payment
Domiciliary Care Allowance from 3 to 6 months
rate of wage subsidy scheme for disabilities will rise by a euro a week
PRSI
Reducing number of contributions for treatment benefits from 260 to 39 weeks
100% Christmas bonus to be announced
Fuel Allowance
Fuel allowance increasing by 5 euro a week
50m for business continuity supports
39m for enhanced marketing and product development
pilot basic income guarantee scheme
25m for the continuation of live entertainment supports
Agriculture
Doubling of the ex-gratia funding for animal welfare organisations as part of 1.85bn programme for Ag and the Marine
