Minister for Finance, Paschal Donohoe TD, will introduce budget 2020 on Tuesday, 8 October 2019.
Although tax receipts in the year to date have surged, with an increase of €3.2 billion to September compared with the same period last year, with a no-deal Brexit looming at the end of October, there is little scope for the Minister to introduce tax reducing measures without equalising the reductions with other tax increasing measures.
There is not expected to be any major tax overhauls in this year’s budget or major changes to any of the headline tax rates for income tax, corporation tax, capital gains tax (“CGT”) or VAT.
It is expected that the usual suspects of excise duties on petrol and diesel will be increase. There is also an expectation that a new charge on all new petrol and diesel cars (as well as used imports) will be introduced.
There is hope that the Minister will review the tax reliefs currently available to support entrepreneurs and private business by increasing the €1million entrepreneurial relief ceiling currently available.
There has been lobbying for an increase in the capital acquisitions tax (“CAT”) tax free thresholds for a number of years now to restore the thresholds to their former levels particularly with the increase in property values. However no increase is expected in this year’s budget. Similarly there is no change expected to the CGT rate of 33%.
A cut to the universal social charge (“USC”) is a possibility again this year, consistent with the Government’s recent policy on increasing the USC entry level and reducing the rates of USC that apply.