Ireland got more measures for expenses decrease in budget 2014

IrelandDublin budgeted for next year’s tax increase and reduce public expenditure to total 2.5 billion EUR against the preparation of the country out of the bailout program. Among the most controversial measures to reduce unemployment benefits for young people up to 25 years, reducing allowances and health benefits for retirees, and increase the excise tax on alcohol and cigarettes. It is also envisaged tax deposit rates be increased to 41% from 33 %, while the fee for prescriptions to be 2.5 EUR from 1.5 EUR. Will be eliminated and one-off payment of 850 EUR to cover funeral expenses for deceased relatives financially troubled families. Businesses will be affected by the new tax on banks and reduce the state subsidy for paid sick leave to employees, but provides for the abolition of tax on airlines and the adoption of a package of incentives for the construction sector. If the draft is adopted in its current form, it would mean that since 2008 the country has implemented austerity measures worth 31 billion EUR. The amount is equivalent to almost a fifth of Ireland’s economy.
“The purpose of this budget is to continue the progress we have made to strengthen policies for economic growth”, said Finance Minister Michael Nuun. “I know there are some opinions that consolidation should continue, but those people have already made enough sacrifices”, he added.
The government predicts the new round of austerity measures to reduce its deficit to 4.8% of gross domestic product (GDP) next year, which is below the goal set by the European Union (EU) and International Monetary Fund (IMF) purpose. Meanwhile, the National Youth Council warned that the measure provides for the reduction of unemployment benefits for young people up to 25 years, will force many to leave the country. “Since 2008 over 177 thousand young people have emigrated, and youth unemployment is now almost 29%, while in 2008 it was 13%”, commented the organization. Ireland also promised to close legal loophole that allows Apple to save on taxes. Michael Nuun announced that it will introduce a special bill to ensure that companies registered in the country will not be able to avoid tax obligations. Dublin announced its decision just after the European Union decided to investigate the tax rules in Ireland, the Netherlands and Luxembourg and links with multinationals. The makers in the country are committed to working with the Organization for Economic Cooperation and Development (OECD) to close all the holes in the tax legislation.

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