Budget 2021: What’s Expected to Happen to Income Tax, Cigarette, Alcohol, and Fuel Prices

Finance Minister Paschal Donohoe will announce Ireland’s budget for 2021 on Tuesday and some big decisions are expected to be made.

With the Brexit and Covid-19 situation over Ireland, it is an extremely difficult time to plan.

But the plan, the Minister of Finance must do it, and soon, as a nation, we will find out what exactly this plan contains.

And with the announcement just days away, here’s what we know so far about what’s likely to happen.

Budget 2021: what we know so far

Income tax

Minister Paschal Donohoe has been consistent in saying that there will be no increase in income tax in this year’s budget.

The Minister recently said, “Our personal tax revenue is holding up pretty well, and in terms of what that says about our economy, it tells me that momentum is building in our economy.”

And the Government Program affirmed that there would be no changes in the Universal Social Burden.

Cigarettes and alcohol

Like every year, there is a general expectation that fags will rise in price again.

The real question seems to be how much will the price go up.

However, alcohol may not be in the same boat because of what has happened to publicans this year; a hike remains to be seen here.

Fuel prices

The carbon tax will go up again, which could force companies to raise fuel prices.

At the moment, it is unclear what will happen to many keeping a close eye on what happens to diesel and gasoline prices.

Social welfare

There is much talk that the pandemic unemployment payment will be restored to its original 350 euros; however, all government signals so far indicate that this will not happen.

The welfare Christmas bonus is also a big talking point, but ministers have yet to commit to whether or not it will be paid.