Budget 2011 4 Year Plan

Taxation Measures to be Introduced:

• Tax credits and bands to be reduced by 16.5%, which will reduce the entry point of income tax to approx E15,300 from E18,300 in 2010 tax year
• Minimum wage to be reduced from E8.65 to E7.65
• Implement pension-related tax changes to yield E700 million, with E240 million in tax savings on the public sector pension related deduction.
• Abolish/curtail a range of tax expenditures yielding E755 million.
• Increase the standard rate of VAT from 21% to 22% in 2013, with a further increase to 23% in 2014. These changes will yield E620 million.
• Introduce a local services contribution to fund essential locally-delivered services. This will yield E530 million.
• Increase the price of carbon gradually from E15 to E30, yielding E330 million.
• Reform capital acquisitions and capital gains tax to yield an additional E145 million.

The plan will reduce the income tax structure back to 2006 levels.

Reduced frequency of tax returns and payments

Reductions in the frequency of PAYE/PRSI and VAT tax returns and payments for smaller businesses will again be extended to eligible businesses from 1 January 2011. Visit revenue.ie for full details.