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Budget 2023: The key highlights as the Government aims to tackle the cost of living crisis

Sep 27, 2022 14:09 By Shannonside News
Budget 2023: The key highlights as the Government aims to tackle the cost of living crisis Budget 2023: The key highlights as the Government aims to tackle the cost of living crisis
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The Budget has been delivered in the Dail this afternoon.

The biggest changes to income tax in more than a decade have been confirmed as part of Budget 2023.

People won't start paying the higher rate of tax until they earn 40,000 euro - meaning 800 euro a year back into the pockets of those earners. Finance Minister Paschal Donohoe has also confirmed the creation of a Vacant Property Tax charged at three times the local property tax.

In a blow to the hospitality sector the reduced 9 per cent VAT rate will be scrapped from February 2023. While the Government has confirmed the carbon tax increases planned for next month will go ahead but will be offset by scrapping the National Oil Reserves Levy.

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The Finance Minister is introducing a concrete blocks levy to pay for Mica redress at a rate of 10% on some concrete products from April 2023. A packet of 20 cigarettes will go up by 50 cent.

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A 25 percent reduction in the cost of childcare under the national childcare scheme has been announced. Minister Michael McGrath says that's at cost of 121 million euro, but will save up to 175 euro a month for families

600-euro worth of electricity credit for households has been announced today. There will be a permanent reduction in student contribution fees by 500 euro. It means it will cost 2500 euro to attend university.

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The free contraception scheme is being expanded to include women age 16 to 30. Inpatient charges will be removed for all public patients under Budget 2023. Minister Michael McGrath is also extending the free GP card to another 430,000 people:

The Government is allocating 238 million euro from the Brexit Adjustment Reserve Fund to help ease the impact of Brexit on farmers and food processors.

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150 million euro in additional funding has been allocated to the Department of Justice. Measures to reduce the student teacher ratio by 1 point to 23:1 - with 370 extra teaching posts - have been announced.

An increase of 100 million euro has been announced for Irish Aid projects.There will be over 1.2 billion euro in Official Development Assistance funds in 2023

 

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