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Irish Times
5 days ago
- Business
- Irish Times
Some could lose out in means-tested child benefit
The introduction of a second tier, means-tested child benefit payment would involve the replacement of some existing supports and could lead to some lower-income households losing out financially, the Tax Strategy Group (TSG) papers suggest. Marin Wall reports. Staying with the TSG papers, Cliff Taylor tells us that the income tax dilemma faced by the Government in framing October's budget is underlined in the key pre-budget papers, which say that indexing tax bands and credits for inflation would cost over €1 billion. And on the same subject Barry O'Halloran says that boosting betting tax in the budget would raise up to an extra €53 million a year for the State, according to Department of Finance officials, while Michael McAleer informs us that a 1 per cent increase in the higher rates of Vehicle Registration Tax (VRT) is one of the budget options outlined by the TSG papers. The European Union is pushing for any future tariffs on pharmaceutical products sold to the United States to be capped at a blanket 15 per cent rate, in ongoing trade negotiations with US President Donald Trump's administration. READ MORE Pharmaceutical products have emerged as one potential sticking point in intense EU-US negotiations to land a tariff agreement in the next eight days. Jack Power reports from Luxembourg. An Coimisiún Pleanála has given the green light for plans to demolish a Smyth's pub on Haddington Road and replace it with a bar and apartments despite locals' fears of a 'superpub' being developed. Gordon Deegan reports. How will the updated National Development Plan shape Ireland in years to come? Listen | 35:59 October's budget is quickly coming into focus, with the Government publishing a key pre-budget document, the Summer Economic Statement, this week. And Ministers face a string of key decisions about the shape of the package, which will have implications for voters' pockets. Voters have got used to giveaway budgets. But despite budget measures of €9.4 billion being signalled, the benefits to households could be significantly less. Here are the big calls facing the Cabinet from Cliff Taylor. In terms of pay, 2024 was a bumper year for the 21 long-standing bosses of the largest Irish publicly-quoted companies, driven by large bonuses paid by companies that exited the Dublin market and moved their primary listings to New York, writes Joe Brennan in Agenda. Figures compiled by The Irish Times show that their average pay package rose by 31 per cent to €4.36 million last year. The median chief executive compensation package, which gives a better picture of the pay landscape as it eliminates the distorting effects of outliers on the pay scales, rose by 16 per cent to €2.53 million. That's 56 times the median salary in Ireland, of about €45,000. We profile four of the eight finalists in the emerging category for this year's EY Entrepreneur of the Year awards. The finalists will vie to become EY Entrepreneur of the Year at a ceremony later this year. The four are: Alan Doyle of Aerlytix; Eddie Dillon of CreditLogic; Aidan O'Shea and Hilary O'Shea of Otonomee and Caitriona Ryan and Niki Ralph of The Institute of Dermatologists In our Friday column Brooke Masters looks at the issue of Donald Trump, Coca-Cola and cane sugar. Last Wednesday, the US president posted on Truth Social that Coca-Cola had agreed to change the domestic formula of its namesake drink to feature 'REAL Cane Sugar' rather than high-fructose corn syrup. The company patently was not ready. But six days later it finally confirmed it would launch a US cane sugar cola in the autumn. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
Irish Times
6 days ago
- Business
- Irish Times
Betting tax increase in budget could raise €53m while higher vehicle levies also examined in tax strategy papers
Boosting betting tax in the budget would raise up to an extra €53 million a year for the State, according to Department of Finance officials. The tax take from betting almost doubled to €95 million in 2019 from €52 million the previous year, after the Government increased the rate on all bets placed in the State to 2 per cent from 1 per cent. Increasing the rate by 1 per cent would add a further €53 million a year, while adding 0.5 per cent would yield another €26.5 million, the department's Tax Strategy Group (TSG) report states. Government would collect a further €800,000 if it increased the tax on the commission earned by betting exchanges, which allow customers to bet against each other, to 30 per cent from 25 per cent, the report added. READ MORE But it cautions that those estimates depend on 'the betting market continuing as normal in 2025 and 2026″ with neither bookies nor their customers changing their behaviour. [ Income tax dilemma for Government as VAT cuts could cost €1bn Opens in new window ] 'It is understood the burden of such additional tax increases would mainly impact large bookmaking firms,' it said. Along with the increase in 2019, the Government introduced relief of €50,000, meant to ease the burden on small independent operators, whose share of the market has shrunk rapidly in recent years. The report suggests increasing this relief to €65,000 should the Government decide to boost the tax rate. However, it adds that Revenue officials argue that this would benefit only a handful of businesses, while it would add to the challenge of getting EU state aid approval for such a move. The report notes that three big businesses dominate the market. Although it does not name them, they are Irish-based giant, Flutter Entertainment, mostly through its subsidiary Paddy Power , Boylesports and UK-based Ladbrokes. A Health Research Report found in 2022 that problem gambling had fallen over the previous eight years, but still hit more than 135,000 lives in the Republic. Revenue figures show that betting is growing, but moving increasingly online. In 2019, customers wagered €28.9 million in cash and €23.5 million digitally, including €1.8 million with betting exchanges. In 2023, digital's share was more than €55 million, of a €102.7 million total, while punters bet €46.6 million in cash. Separately, a 1 per cent increase in the higher rates of Vehicle Registration Tax (VRT) is one of the budget options outlined by the TSG papers. It says that if applied across the upper VRT bands – 11 to 20 – covering the price of new and imported used cars, it 'would affect only cars with above-average emissions' and could raise €28 million based on 2024 registrations. The group also suggests increasing the NOx surcharge on new and imported cars by €5 per mg/km, potentially generating another €15.5 million. On Benefit-in-Kind tax (BIK), the paper proposes creating a new zero-emissions category, with rates ranging between 6 and 15 per cent, depending on annual business mileage. A higher VRT rate of 15 per cent is also suggested for vans and light commercial vehicles emitting more than 260g/km of CO2. This would sit above the recently introduced two-band emissions-based VRT system, where the top rate currently stands at 13.3 per cent for vehicles over 120g/km. The TSG notes that future reforms could include emissions-based BIK rates for vans, potentially retaining the current 8 per cent rate for low-emission models, with higher rates for those over a certain CO2 threshold. The latest TSG paper revises a proposal made last year on an additional VRT surcharge based on a vehicle's weight. Modelled on a system currently operated in France and Norway, an additional charge would be imposed on vehicles above a certain weight threshold, with various potential reliefs for the likes of fully-electric or hybrid models. The TSG states: 'It is well documented that the scale of the proposed electrification of the national fleet will entail significant revenue risk, with the growth in EVs expected to erode Exchequer receipts from motor tax, VRT, VAT and fuel excise, particularly if the current tax structures remain unchanged.' It estimates that revenue from taxes on fossil fuel use and related transport will fall by €1 billion by 2030, down from €5.3 billion in 2022.
Dublin Live
27-06-2025
- General
- Dublin Live
All the social welfare, cost of living, and bill changes in July with plenty of good news
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info There is plenty of good news lined up for the month of July. Between a rule change for a social welfare payment and another scheme remaining open for applications, there is a lot people need to know. Here is everything you need to know for the month of July: Social welfare Back to School Clothing and Footwear Allowance The Back to School Clothing and Footwear Allowance (BSCFA) have opened this month. Some people will automatically qualify for the scheme, with the Department of Social Protection (DSP) expected to let you know if this is the case using your MyWelfare account, or by post. If you don't hear from the DSP by the end of June, you must apply for BSCFA online, even if you got the BSCFA payment last year. Payments for the schemes will begin being made from the week starting Monday, 14 July. If your child is aged between four and 11 on 30 September, you could qualify for a cash boost of €160, whereas, if your child is aged between 12 and 22, you may receive €285. You can find out more about the payment here. Carer's Allowance Carer's Allowance is a weekly social welfare payment to people who care for someone because of their: Age Disability, or Illness (including mental illness) To qualify for the payment, your income must be below a certain amount. If you care for two or more people, your rate of Carer's Allowance is increased by 50% (maximum) each week. If you get another social welfare payment, you may get half-rate Carer's Allowance. In July 2025, the Carer's Allowance income disregard will increase to €625 for a single person and €1,250 for a couple. You can find out more information here. Bills Vehicle Registration Tax (VRT) for commercial electric vehicles An emissions-based approach to VRT for category B commercial vehicles is being introduced from 1 July 2025. This will introduce a lower 8% rate for category B vehicles with CO2 emissions of less than 120 grams per kilometre and vehicles with CO2 emissions greater than 120g/km will be at 13.3%. Rent Pressure Zones From 20 June 2025, all private and student-specific accommodation tenancies in Ireland now come under Rent Pressure Zone (RPZ) rules. landlords can increase rent once a year by either the rate of inflation or by 2%, whichever is lowest. You can find out more information about it here. Join our Dublin Live breaking news service on WhatsApp. Click this link to receive your daily dose of Dublin Live content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice . For all the latest news from Dublin and surrounding areas visit our homepage.
