Budget cuts aim to reshape Ireland


Families hard hit on day one of Irish Budget – and there’s more to come


Cigarettes go up by 25 cents for a packet of 20 -- not enough, according to anti-smoking campaigners -- and petrol rises up by up to three cents per liter following a carbon tax increase of €5 per ton, and Environment Minister Phil Hogan is to increase motor tax in the New Year to raise €47 million,
In an attempt to add some optimism to the crippled property market, a new capital gains tax incentive has been drawn up. The gains on any property purchased between midnight on budget day and the end of 2013 and held for at least seven years will be exempt from the tax.

For first-time buyers who bought homes during the property boom between 2004 and 2008 and now facing negative equity, mortgage interest relief will be increased to 30%.

For first-time buyers purchasing next year, a mortgage interest relief of 25%t will apply, while non-first-time buyers can benefit from a 15% relief rate.