[ad_1]
Motorists are poised to take a hit in today’s budget, but there will be a Christmas cash boost for most of those who lost their jobs due to the Covid-19 pandemic.
The tax granted and VRT, along with the cost of diesel and gasoline, will increase as part of a government plan to discourage people from driving high-emission cars.
The car tax is expected to rise by as much as 50 euros a year for some highly polluting car drivers, while it is expected to decrease for those who drive zero-emission cars.
The government is expected to enact proposals in a recent fiscal strategy document, prepared by the Department of Finance, which suggested a review of the auto tax system.
The changes will make 88% of motorists avoid the tax increase, but 7% of drivers of vehicles, mostly older, will have to pay an additional 10 euros a year.
Another 4 percent of drivers with highly polluting vehicles will pay an additional € 30-50.
Motor tax increases are being introduced in line with climate action commitments and will incentivize motorists to stay away from the most polluting vehicles.
The old car tax system is being completely replaced by a new model that takes into account emission rates more accurately.
One source said the government is looking to minimize the impact on drivers of smaller, more efficient cars while targeting heavier, carbon-emitting vehicles.
The move will be seen as a great victory for the Green Party, but it is likely to result in a backlash for Fianna Fáil and Fine Gael.
Meanwhile, the cost of gasoline and diesel will increase after budget due to a € 7.50 increase in carbon tax.
That will add € 1.30 to an average 60-liter gas tank and € 1.51 to a diesel tank.
Government subsidies for new electric, plug-in and hybrid cars will be phased out in favor of charging less VRT for such low-emission vehicles. The new scheme will favor low-emission vehicles, such as electric vehicles, plug-ins and conventional hybrids, by charging much lower levels of VRT (halved to 7 percent in many cases) than it currently is.
Conversely, medium to heavy emission fossil fuel cars will be hit with a higher VRT, and the price of those at the ‘gasoline consumer’ end of the spectrum will skyrocket.
It is estimated that an average family car will increase in price by more than 1,000 euros, at least, as a result of the planned measures.
However, some analysts have calculated that many popular family SUVs will skyrocket by as much as 7,000 euros.
The current VRT discounts subsidize the price of electric vehicles by € 5,000. There is also a € 5,000 grant from the Sustainable Energy Association of Ireland (SEAI) funded by the government. That € 5,000 rebate of VRT for electric vehicles will expire at the end of next year. Meanwhile, the full VRT concession will only apply to cars costing up to € 40,000 and will be reduced to zero for those costing more than € 50,000.
Direct Treasury support for hybrids (€ 1,500 discount on VRT for cars currently emitting less than 80mm) and plug-in hybrids (up to € 2,500) will be phased out later this year.
It is estimated that the lower VRT rates will offset and maintain prices similar or, in some cases, below current levels.
The planned budget announcements are based on the recently released Fiscal Strategy Group report.
As a result, the number of VRT bands will increase from 12 to 20 to more accurately reflect and charge for contamination levels.
The changes will see the car tax increase by up to 50 euros a year for some drivers of highly polluting cars, while it will be reduced for those who drive zero-emission cars.
The move will be seen as a great victory for the Green Party, but it is likely to result in a backlash for Fianna Fáil and Fine Gael.
In the meantime, a full Christmas bonus will be paid to all welfare recipients, including most of the pandemic unemployment payment. However, workers who were recently unemployed due to increased government coronavirus restrictions will miss the bonus, as will anyone who loses their job between now and Christmas.
In health, the National Cancer Control Strategy will receive a boost of 20 million euros amid concerns about delays in diagnosis due to the pandemic.
Meanwhile, a Christmas bonus will be paid to all welfare recipients, including most, but not all, of those receiving the Pandemic Unemployment Payment (PUP).
The move means that thousands of retirees, people with disability payments and those who were unemployed before and after the pandemic will see their weekly pay increase before Christmas.
However, not all Pandemic Unemployment Payment recipients will receive the recharge.
It is understood that about 90 percent of the 227,000 currently receiving the payment will receive the bonus.
Generally, a person must receive welfare for 15 months to qualify for the Christmas bonus.
This would mean that thousands of people who were made unemployed due to the Covid-19 pandemic would miss their bonus payment.
However, the Government has decided to reduce this to four months, to allow those in pandemic support to receive the supplement this year.
The four-month threshold does not have to be simultaneous and a pandemic payment recipient who was unemployed at the start of the Covid-19 outbreak but returned to work before losing it again can still qualify.
However, people who were recently unemployed due to increased government coronavirus restrictions will miss out on payment.
Anyone out of work between now and Christmas will be lost too.
It is understood that the Minister of Social Protection, Heather Humphreys, and the Minister of Reform and Public Expenditure, Michael McGrath, reached the agreement last night.
The total cost of the budget measure is 650 million euros.
Justice Minister Helen McEntee has also secured significant funding to increase the number of Garda recruits by 600, along with an additional 500 civilian members of the force.
Last night, the minister was also in negotiations with McGrath to secure financing for 70 new Garda vehicles.
Ms. McEntee hopes to purchase the new fleet to replace the rental cars that Gardaí has been using during the pandemic.
His budget for An Garda Síochána is significant given the rising costs of the Covid-19 pandemic and the possible implications of Brexit.
However, it is understood that he has insisted on the strength needed to grow next year to address the unique circumstances raised by both Covid and Brexit.
There will be no major changes to state child care subsidies in the Budget.
The sources said big changes to state child care schemes will not take place until after three ongoing reviews of funding, workforce and operating model are completed and the government does not want to “get ahead of” the outcome. of these studies.
Meanwhile, the self-employed will also be able to earn a certain amount of income and at the same time claim the PUP.
A new compensation scheme will also be announced for companies affected by Covid-19 restrictions.
The cost of cigarettes is projected to increase by 50 cents, but the excise tax on alcohol will not increase.
It is understood that there are no plans to increase sugar taxes this year.
In other places, there will be some small changes to the tax system to give caregivers more tax credits.
VAT rates in the tourism and hospitality sector are expected to drop from 13.5% to 9% to help revive the sector.
Irish independent
[ad_2]