Part 2 of Budget 2017 is now underway.
Tax cuts and spending increases costing over 1.3 billion euro are being unveiled by Michael Noonan and Paschal Donohoe
The much leaked first time buyers grant has been included.
First time buyers will be entitled to a 5% grant on newly built house up to the value of 20,000 euro.
There will be a boost for those who want to earn extra money by renting out a room in their home, the tax free rental allowance under the ‘rent a room scheme’ is being increased to 14,000 euro per year.
As predicted USC bands for all workers earning up to 70,000 euro will be cut by half a per cent, savers will see a 2% per year reduction in Dirt, from 41% for the next 4 years. and there’s to be an increase in tax credits for self employed people by 400 euro
The tax-free threshold for inheritance tax will rise to 310,000 euro where the beneficiaries of a will are children, all other categories will rise by 8%.
A sugar tax is to be introduced in 2018 and a rainy day fund of one billion euro is to be put aside each year by the government of the day
The budget also contained plans for almost 4,500 additional frontline staff – Gardai, nurses and teachers – in 2017
As regards the so called old reliables, a packet of 20 cigarettes will rise by 50 cent from midnight but there will be no change to alcohol, petrol or motor tax prices.