Minister for Finance Paschal Donohoe unveiled Budget 2019 on Tuesday
Tax payers in Carlow will see the 4.75% USC rate cut by 0.25%, social welfare payments up €5 from next year, the social welfare Christmas bonus fully restored to 100%, two extra weeks' parental leave, and no increase in alcohol, fuel, or carbon taxes, in the Budget 2019 unveiled by Minister Paschal Donohoe on Tuesday.
Some of the key points of this budget include:
The excise duty on a packet of 20 cigarettes will rise by 50 cents, bringing the cost of a packet of cigarettes to €12.70, but there will be no increase on wine and beer.
Delivery of 10,000 new social homes
50c reduction in prescription charges for medical card holders over 70
Increase in rate of VAT in the tourism sector to 13.5% from January 2019
No change in VAT for newspapers, stays at 9%
Mortgage interest relief for landlords will rise to 100% from January 1.
Self-employed tax credit up by €200
Home carer tax credit up by €300
Back to school allowance up by €25
DIRT cut by 2%
In health, there will be an increase of €1.05bn in Health funding for 2019 bringing the health budget to €17bn.
€25 increase in the weekly income threshold for GP Visit cards
50 cent reduction in prescription charges from €2.00 to €1.50 for all medical card holders over the age of 70
€10 reduction in the monthly Drugs Payment Scheme threshold from €134 to €124.
A new paid parental leave scheme will be introduced in November 2019 to provide two extra weeks’ leave to every parent of a child in their first year. The Government intends to increase this to seven extra weeks over time.
Also, the Qualified Child Payment of €2.20 per week in respect of under 12s and €5.20 per week in respect of over 12s, as well as a €25 increase in Back to School Clothing and Footwear Allowance rates.
Capital Acquisitions Tax: Increase in the tax-free threshold that applies to transfers between parents and their children from €310,000 to €320,000.
Agriculture is a big employer in Carlow. Here the main changes are:
€60m for Brexit related supports will be provided to improve resilience in the farm sector.
Renewing the existing stock relief measures for a further three years.
Extending income averaging to farms with off-farm trading income.
Providing a three-year extension of the Young Trained Farmer stamp duty relief, which was due to expire at the end of this year.
In terms of Tax and USC:
Reduction in the third rate of the Universal Social Charge (USC) from 4.75% to 4.5%.
Increase in the entry point to the higher rate of income tax for all earners by €750.
From 1 January hourly minimum wage to increase to €9.80, the second USC rate band will be increased from €19,372 to €19,874.
The weekly threshold for the higher rate of employer’s PRSI will be increased from €376 to €386.