On Tuesday 09 Oct, the Budget for Ireland for 2019 will be announced. In previous years the media was whipping their readers into a frenzy about what will be increased and what will be decreased and lots of interest groups warned the government about the terrible consequences of the new budget unless they turn it around in time before Tuesday.
But it seems to me that this year the Budget Day is coming on soft slippers. There seems to be a lot less noise about the announcement on Tuesday than in previous years. It could be that it is just my perception, but it also could be that it is quieter because everyone knows that we can’t expect much (good) from the budget, but that it also won’t be tooo bad.
Yes, Cigarettes prices will most likely go up again. Not for health reasons, but just to get taxes.
Petrol and Diesel prices will probably go up as well (and you should fill up your car before midnight on Tuesday if you want to avoid the price hike for the last time).
The 9% VAT rate for the hopsitality sector (hotels and restaurants) will probably go up and that will have a definite bad effect on your pocket if you ever eat out! The restaurants will ALL increase their prices the moment the VAT increase takes effect and the increase will never be limited to the actual VAT increase, but will be generously rounded up. (A 2% increase of that VAT rate should increase a EUR 20 dinner only by 40 cent, but I bet most restaurants will add at least EUR 1 to the price!)
Income tax might fall a bit, but the other tax increases will most likely eat all the savings so that you end up with just a handful of Euro more in your pocket.
DIRT (Deposit Interest Retention Tax), that’s the tax on the interest you earn for your savings, will go down, but that is just part of a many year plan of reducing it, so nothing new. And the Property Tax might go down a tiny bit.
Nothing overly exciting! Maybe that is the reason for the reduced media hype!?