Petrol, diesel and cigarettes all set to go up in next weeks budget

Petrol, diesel and cigarettes all set to go up in next weeks budget

FINAL negotiations for next weeks budget have revealed that cigarettes and fuel are both likely to rise in price.

Finance Minister Paschal Donohue will present the Budget Statement to Dail Eireann next Tuesday, 9 October.

The statement will outline the country’s economic outlook and any changes to taxes.

According to the Irish Independent, fuel and cigarettes are facing a price hike.

The top priority for the budget looks to be the Carbon Tax, which will drive up the cost of home heating and motoring.

The Minister is also looking to raise money in order to fund social welfare hikes and income tax reductions.

He has also suggested implementing a series of ‘stealth taxes’ on workers and businesses.

The excise duty will rise on cigarettes, possibly replicating last year’s 50c increase.

Minister Donohue will give himself another €100m for budget pruposes by reducing mortgage interest relief for up to 300,000 homewowners and hiking education levies paid by businesses.

The Irish Examiner reports that a 9% VAT rate on hotels, B&B, and restaurants is to increase by at least two per cent. The 9% rate has been in doubt following reports of city-centre hotels charging in excess of €300 a night per room.

The Government is looking for ways to raise revenue, but has €3.4bn for new spending next year.

However, €2.6bn of this has already been committed for public sector pay hikes and demographics.

This leaves just €800m, which will be split 2:1 in favour of spending over tax cuts.

After Minister Donohue's statement is made next Tuesday, TDs will debate the changes to spending - which could last for days.

A vote will be called If members of the Dail don't agree with the changes to see whether they'll go ahead with the resolutions.