KCLR News

Finance Minister announces a Budget to help manage rising cost of living

The main weekly welfare payments, including the state pension, are to rise by €5 a week with tax credits going up €50.

The Finance Minister Paschal Donohoe says Budget 2022 is intended to help people and business manage the increasing cost of living.

520m tax package is included with the rate at which people pay the higher rate increased by €1,500.

The personal tax credit, employee tax credit and earned income credit are increasing by €50

The main weekly welfare payments, including the state pension, are to rise by €5 a week – along with the weekly fuel allowance.

The minimum wage is increasing to 10.50 per hour.

For businesses – the Employment Wage Subsidy Scheme is extended in graduated rates until April next year with no change in October and November. However in Dec, Jan and Feb a two rate structure of €151.50 and €203 will apply.

A new tax will be introduced for land which is zoned for housing and serviced but is not being developed to encourage house building.

Local brewer Seamus O’Hara had been campaigning for a 50 per cent excise relief for independent small producers of cider and other fermented drinks – which is included.

Carbon taxes will increase by €7.50 a tonne from midnight, meaning petrol, diesel, coal and home heating oil will be more expensive.

Excise on a 20 pack of cigarettes going up 50c with a pro rata on other tobacco products – Price of most popular cigarettes now €15.