Give-away Budget a boon for pensioners and first-time buyers
A multi-million euro give-away Budget today focused on supporting families, people with disabilities and first-time home buyers.
Minister for Finance Brian Cowen announced wide-ranging measures to the Dáil including €973m in social welfare increases and €501m in tax cuts.
Ending weeks of speculation, the minister revealed the top rate of tax was cut by 1% to 41% which will cost €125m in 2007.
Minimum social welfare rates will increase by €20 a week to bring them to 30% of the gross average industrial wage.
In a key Government commitment, the contributory Old Age Pension increased by €16 to €209.30 and the non-contributory rate by €18 to €200.
Old reliables like cigarettes also get an extra 50c slapped on packets of 20.
Ruling out an anticipated cut in stamp duty, Mr Cowen doubled the maximum mortgage interest relief to first-time buyers from €8,000 to 16,000.
Mr Cowen said his Budget would support pensioners, people with disabilities, families and first-time home buyers as well as rewarding work and promoting enterprise.
“In present economic circumstances, this Budget is fiscally sustainable, economically appropriate and socially responsible.”
Other main provisions of Budget 2007 include:
:: From January 2008, motorists will pay less motor tax for lower emission vehicles.
:: Newly-increased tax credits and wider bands means 40% of all earners will be outside the tax net in 2007;
:: The 20% standard income tax band will be widened from €32,000 to €34,000 for single people.
:: The annual respite care grant is to increase five-fold to €1,500;
:: Householders will save €24m on home heating costs with the abolition of excise on Kerosene and LPG.
:: Tax exemption for childminders will increase by 50% to €15,000 in 2007;
:: A total of 72,000 jobs will be created in 2006.
Mr Cowen told the Dáil his Government had increased the minimum social welfare payments by 56% since 2002 – over three times the rate of inflation during that period.
“The best way of meeting the key social challenges ahead is by putting the individual citizen at the centre of our concerns where the common good must come first, above and beyond strong organisational interests.”
