Irish budget raises VAT and carbon tax

December 06 2011

Ireland’s finance minister Michael Noonan today finally confirmed a two percentage point hike in the VAT rate and increased the country’s carbon tax.

The new VAT rate of 23% will be effective on January 1 2012.

Delivering his budget to parliament, Noonan pledged his commitment to attracting investment from multinationals.

The carbon tax will rise from €15 to €20 per tonne. This will be effective tomorrow.

Noonan also confirmed the 12.5% corporate tax rate will remain unchanged and announced further measures designed to attract multinationals to invest in Ireland.

Noonan proposed a Special Assignee Relief Programme to allow multinationals to attract key people to Ireland. In addition, there will be a Foreign Earnings Deduction to help companies expand into foreign markets.

More to follow...

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Joe Dalton

Joe Dalton worked at ITR between 2011 and 2013

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