New Programme for Government

The programme for government of the new Fine Gael / Labour government has been published and contains some proposals that will effect taxation

• Maintenance of Ireland’s 12.5% corporation tax rate
• No increase in the standard 10.75% rate of Employers’ PRSI, and a reduction of 50% of the lower 8.5% rate up to the end of 2013 on jobs paying up to €356 per week
• No further changes to income tax rates, bands or credits, and a review of the USC
• Property tax reliefs and other shelters which benefit very high income earners will be reduced, capped or abolished
• An acceptance of the EU/IMF bailout conditions for at least the next two years which could see the introduction of a property tax, water charges and changes in VAT

It remains to be seen if the Government will introduce a mini-budget in late May or early June to implement some of these changes.