The forecasted date of the 2020 budget blue print is the 8th of October 2019. The 2020 budget is expected to be relatively bountiful with tax levies being significantly slashed and the spending net being double stretched.
Important points to note
- The expenditure to the tax ratio is expected to be positive figure
- Expenditure is expected to be double the tax quantum allocated for the year
- Tax reductions are expected to total at least €233 million while the expenditure line is augmented to twice that amount.
- Social welfare and state pension contributions will be augmented by ranging amounts, with the most vulnerable receiving a greater proportion of the funds.
- Whole payment of bonuses such as the Christmas bonus cannot be promised at hand there is little doubt that they will not be paid out.
- A €9 weekly increase to all social welfare monetary contributions was suggested by the Ireland social justice department. This figure sufficiently raises the payments to a 27.5% average remuneration threshold. A state pension pay out of €257.30 has been tabled for all pensioners following the €9 weekly pay out increase.
- Universal Social Charges will be upgraded with the foresight of phasing out the charges altogether, hence the minimum amount levied to individuals would be curbed above the existing 2% charge. An upward revision of all income tax levies is anticipated.
- Due to a mandate which was put on place to raise the earned income credit for all self employed individuals to the PAYE credit threshold value of €1650, the credit facility is anticipated to increase the amount which all sole traders and entrepreneurs an access.
- In order to facilitate for green energy development and sustainable use of resources the government is prospecting to revise the carbon tax to €30 a tonne from the previous €20 a tonne.
The tenure of the help to buy enterprise could possibly be extended well into the 2020 budgetary vision. Since 2014 all exercise duty values allocated to imported alcohol products which include wine and beer have not been revised hence there is a significant premonition that duty will be increased for these products. This increase would see revenue generation from all imported alcoholic products rising significantly. For more insights, reach out to SIGTAX. Our experts stay au courant with all the latest developments in the industry.