The budget was preceded by a rare televised national address by a Taoiseach when Enda Kennyspoke to the country two days beforehand.[2] This was only the sixth time that a Taoiseach has addressed the nation, reflecting the gravity of the Irish economic condition, in what Kenny stressed were "exceptional" circumstances. The address drew the second highest television audience of the year on Irish television.[3] The following day, Thomas PringleTD replied on television in an address on behalf of the opposition technical group of TDs in Dáil Éireann.[4]
Reduction in the VAT rate on district heating from 21 percent to 13.5 percent, to benefit businesses.
Farmers to be able to claim a VAT refund on wind turbines purchased from 1 January 2012.
Broaden the base for pay related social insurance (PRSI) through removal of the remaining 50 percent employer PRSI relief on employee pensions.
Broaden PRSI base to cover rental, investment, and other forms of income from 2013.
Increase the rate of notional distribution on the highest value Approved Retirement Funds and similar products to 6 percent.
Increase the rate of tax on the transfer of an ARF retirement fund on death to a child over 21 from 20 to 30 percent.
Abolish the "citizenship" condition for payment of the Domicile Levy so as to ensure that "tax exiles" cannot avoid it by renouncing their citizenship.
Increase the current rate of Capital Acquisitions Tax from 25 to 30 percent after Budget Day.
Increase Capital Gains Tax from 25 to 30 percent after Budget Day.
VAT increased by 2 percent. Government commits to not raise the standard rate of VAT beyond 23 percent during its lifetime.
300,000 people to move from liability to pay Universal Social Charge.
Universal Social Charge: From 1 January, exemption level to be raised from €4,004 to €10,036. Revenue to collect USC on a cumulative basis in 2013.
Additional new tax measures of €1 billion.
No increase in income tax.
General government deficit to be 10.1 percent of GDP in 2012 and 8.2 percent in 2013 - both below targets in troika bailout.
A property relief surcharge of 5 percent to be imposed on investors with an annual gross income over €100,000.
Increased mortgage interest relief for first time buyers buy from Budget Night up to a year, but nothing if wait until 2013
Non-first time buyers in 2012 to benefit from mortgage relief at 15 percent instead of 10 percent proposed by the last Government.
Mortgage interest rate relief increased to 30 per cent.
No changes on residential stamp duty.
Capital Gains Tax incentive also announced; modifying retirement relief from Capital Gains Tax so it better incentivises the timely transfers of farms and businesses before the current owners reach the age of 66.
Fifty percent stock relief for all registered farm partnerships and 100 percent stock relief for certain young trained farmers forming such partnerships.
Stamp Duty on commercial property including farmland to be cut by 6 to 2 percent from midnight following Budget Day.
Nine per cent rate of VAT for tourism extended to open farms.
The first €100,000 of R&D expenditure of all companies will be allowed on a volume basis for the purpose of the R&D Tax Credit.
Corporate tax exemption for new start-up companies to be extended for the following three years and to be available for companies that commence trading in 2012, 2013 and 2014.[1]
After the budget
The Bill proposing the introduction of a "household charge" passed by 90 to 47 votes in the Dáil late on 14 December 2011. The following day, nine TDs helped launch a nationwide campaign against the household charge.[7]
