Finance Minister Paschal Donohoe TD has unveiled the Budget to the Dáil, setting out planned public expenditure and tax changes for 2023. Representing one of the largest non-Covid budgets worth €11 billion, new spending for 2023 will be accompanied by €4.1 billion in one-off cost of living measures.
A Business Energy Support Scheme (BESS) will be introduced. Business will be able to reclaim 40% of their electricity bills where costs are 50% higher than last year.
The Irish Government will support forthcoming EU proposals on a windfall tax on international energy companies.
The top income tax rate of 40% will now only be paid on income above €40,000.
The temporary reduction in VAT on the supply of gas and electricity from 13.5% to 9% has been extended to 28 February 2023.
The Help-to-Buy scheme has been extended until 31 December 2024.
A rental tax credit of €500 will be available to each tenant.
The 9% VAT rate for tourism and hospitality will expire on 28 February 2023.
The cost of special exemption orders, required by venues to open late, has been halved from from €110 to €55.
A contribution of €2 billion has been made to the national reserve fund to assist with future economic downturn. An additional €4 billion will be paid in 2023.
VAT on Irish newspapers has been reduced from 9% to zero, taking effect from 1 January 2023.
Inflation is expected to reach 7% next year, according to forecasts.