DONEGAL was hit by a new tax bombshell today as the Government struggles to pay off the national debt – with a furious Donegal deputy Pearse Doherty launching a scathing attack on Taoiseach Enda Kenny.
People in every walk of life in the county will face paying more indirect taxes with VAT going up to 23%.
There are also hikes in a range of other taxes with motorists bearing the brunt as diesel and petrol also rise from midnight and massive road tax hikes.
And for families struggling to heat their homes will find it harder next year as tax on home heating oil – the fuel used by most homeowners in Co Donegal
“You are dashing the hopes of people who put faith in you,” said Pearse Doherty in the Dail.
“You didn’t go after the high earners in this budget, because you are the high earners,” said the angry Donegal TD.
Several Labour TDs including Patrick McNulty tonight vowed to vote against the Budget.
He hit out at Leo Varadkar who questioned his decision. Deputy McNulty responded: “He told people to take a holiday. I won’t be. I will be standing by my constituents.”
CHANGES AT A GLANCE:
Income tax: No increase
VAT: Raised by 2% to 23%
Universal Social Charge: Exemption raised to €10,000 – this affects 330,000 people
Carbon Tax: Increased from €15 per tonne to €20 per tonne
▪ 1.4c increase on Petrol
▪ 1.6c increase on Diesel
▪ €17.32 increase on Fuel Oil (to rise in May)
▪ €14.46 increase on Natural Gas (to rise in May)
▪ No Carbon Tax on solid fuels
Cigarettes: 25c increase on pack of 20
Alcohol: No change in excise duty
▪ Legislation planned on low-cost alcohol
Motor Tax: Changes to apply from 1 January
▪ Band A up €56 to €160
▪ Band B up €69 to €225
▪ Band C up €28 to €330
Mortgage Interest Relief:
▪ 30% for first-time buyers between 2004 and 2008
▪ 25% for first-time buyers in 2012
▪ 15% for non-first time buyers
▪ €100 household charge waived
Stamp Duty: No change to stamp duty on residential property
Capital Gains Tax incentive: Applies to property bought by end 2013 and kept for 7 years
Capital Acquisitions Tax: Up from 25% to 30%
Capital Gains Tax: Up from 25% to 30%
DIRT: Up from 27% to 30%
Corporate Tax Rate: To remain at 12.5%
50% Employer PRSI pension relief abolished
Tax up 1% to 6% on transfer of Approved Retirement Funds