Excise hike on cigarettes, motor tax to go up

Finance Minister Michael Noonan has said that to protect vulnerable people in society, he is proposing to provide a waiver of the household charge of €100 per dwelling for those on mortgage interest supplement and those in certain categories of unfinished housing estates. Provision will also be made to allow payment of the €100 in instalments.
The household charge is set to raise €160m a year and is an interim measure pending the design and implementation of a full property tax from 2014.
The Minister also said he is initiating a consultation period with the motor industry and other interested parties to start early next year to review options for the improvement in VRT and motor tax in future years.
But in the meantime, the Minister for Environment, Community and Local Government Phil Hogan will make a provision for an increase in motor tax from January 1. Mr Noonan said this will generate about €47m in 2012 to be used for Exchequer deficit reduction proposals.
Figures released with the Budget show that motor tax for cars in CO2 emission band A will rise from €104 to €160 while band B goes up from €156 to €225. These are the two biggest CO2 categories of cars for motor tax. More details were published by the Department of Finance.
He also said the Finance Department will engage in a consultation process with the car industry to put in place an export refund scheme which would allow for a refund of VRT on a vehicle on the permanent export of the vehicle to another member state in the European Union.
The Minister said that excise duty on a package of cigarettes will rise by 25 cent from midnight tonight. He said the 2% VAT increase will apply to alcohol but excise will not be increased.
He also said that the Minister of State at the Department of Health, Roisin Shorthall, will legislate to deal with the issues identified in a report on the causes and consequences of alcohol abuse in 2012, including the low cost of drink sold in off-licences and supermarkets.
Legislation to facilitate the extension of betting duty to remote betting will also be introduced as well as the introduction of betting intermediates duty to cover betting exchanges, the Minister said.
In an effort to combat absenteeism in the workplace, Minister Noonan said he is removing the existing tax exemption for the first 36 days of illness benefit and occupational injury benefit so that this incentive to absenteeism is removed.
He also said that Joan Burton, the Minister for Social Protection, will bring forward proposals to deal with absenteeism in both the public and private sectors next year.
Finance Minister Michael Noonan, in wrapping up his Budget speech, said the core mission of the Government is to get Ireland working again.