Property tax, child benefit cuts and duty hikes unveiled
The State now had the basis of a renewed economy that will lead to greater employment, he said.
In order to support small businesses in this new economy, Mr Noonan said he was reforming the three year corporation tax relief for start up companies to allow unused credits to be carried forward.
He is also changing the R&D tax credit by doubling the initial spend eligible for the credit from €100,000 to €200,000 and extending the foreign earnings deduction for work related travel to certain countries beyond the BRICS, to support exports.
The VAT rate for the tourist industry will continue at 9 per cent, as opposed to 13.5 per cent, in 2013, a rebate on fuel will be available to hauliers from next July, and a range of support funds are being developed by the National Pension Reserve Fund to provide equity, financing and restructuring options.
The rate of corporation tax is to be maintained at the current level. The Government is providing Enterprise Ireland with an allocation of €139 million to support indigenous Irish exporters in 2013. A new ten-year €175 million Venture Capital Fund is being rolled out to fund new and expanding Irish companies.
Mr Howlin concluded by saying that when he took office last year, he “could not be certain that we would make it through this crisis”.
“I no longer hold this fear,” he said. “What the people of Ireland have endured has been tough, almost without precedent in the developed world.
“That we will come through it, and we will, is a significant shared achievement. In time, future generations will be proud that we, as a people, tackled this crisis head on. There remain difficult challenges ahead of us but Ireland and her people will prosper again.”
The Government had a comfortable majority of 108 to 49 on the first vote on the Budget tonight. The increases to excise on alcohol and cigarettes were supported by Fine Gael and Labour and opposed by Fianna Fáil, Sinn Féin and Independents.
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