Sunday 26 January 2020

Charlie Weston: #Budget 2014 – five ways it hits your pocket from midnight

Charlie Weston

Charlie Weston

1. FROM midnight the cost of cigarettes, a pint and a measure of spirits will rise. Minister for Finance Michael Noonan announced this afternoon a rise of 20c in the excise duty on cigarettes. The pint will go up by 10c.

2. Savers are set to see a massive rise in the tax imposed on the interest they earn.

From the start of next year the DIRT (deposit interest retention tax) goes from 33pc to 41pc. And anyone who makes a tax return to Revenue will, from next year also have to pay PRSI.

This will mean paying a total of 45pc in tax - so almost half of any interest earned will go in tax.

3. Anyone saving for a pension will be hit by a rise in levy on private schemes from next year.

Instead of the levy ending, as Finance Minister Michael Noonan promised last year, it will now continue beyond 2014, but at a lower rate.

4. Pregnant women will see the maternity benefit “standardised” at €230 a week for 26 weeks from January onwards

Most woman get a higher rate of €262, so there will be a huge loss for new mums.

5. And the bereavement grant of €850 goes.

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