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Taxing Times Budget 2019

Taxing Times

Taxing Times

Budget 2019 & Current Tax Developments

Budget 2019 & Current Tax Developments

Budget 2019 was introduced by the Minister for Finance against the backdrop of a remarkable Irish economic performance in recent years. Having endured a serious economic downturn as a result of the property market crash 10 years ago, Ireland is now enjoying robust economic growth, reaching full employment and ending government borrowing. It is a tribute to the sure footedness of Irish policy makers, and to the discipline of Irish citizens, that this has been achieved.

This Budget sees the distribution of some of the fruits of improving economic conditions, mostly in the form of increased government spending. On the tax front there is a mixture of tax increases and modest tax reductions.

The tax relief measures include:

  • A reduction in the 4.75% rate of USC to 4.5%
  • An increase of €750 in the standard rate income tax band
  • An increase in the home carer tax credit by €300
  • An increase in the earned income tax credit by €200

The tax raising measures include:

  • An increase in the VAT rate applicable to tourism related activities from 9% to 13.5%
  • The second of three 0.1% increases in the rate of Employer’s PRSI, via an increase in employer contributions to the National Training Fund 
  • An increase in betting duties and tobacco related excise duties 

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