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I am not looking forward to this budget, the second one in 6 months! Later on I will post the “highlights” (sic) of the Budget but in the meantime I advise everyone to go out and buy petrol/diesel, wine, beer, spirits, cigs etc.

(Well if we all did that we probably wouldn’t be in this mess, lol)

Please see below the updates from Budget 2009

• The income levy rates will be doubled to 2%, 4% and 6%.
• The exemption threshold will be €15,028. The 4% rate will apply to income in excess of €75,036 and the 6% rate to income in excess of €174,980.
• The health levy rates will double to 4% and 5%. The entry point to the higher rate will be €75,036.
• The PRSI ceiling will be increased from €52,000 to €75,036.
• Mortgage interest relief will be discontinued for any mortgage over 7 years from 1 May.
• Diesel to increase by 5c a litre (including VAT)
• The Excise Duty on a packet of 20 cigarettes will be increased by 25 cent (including VAT)
• Early Childcare Supplement monthly payment to be halved to €41.50 per child with effect from 1 May 2009 and abolished at end-2009. It will be replaced in January 2010 with a pre-school Early Childhood and Education Scheme (ECCE) for all children between the ages of 3 years 3 months and 4 years 6 months

More in-depth details can be found at budget.gov.ie

Below are some of the main points to come out of the budget yesterday.

• 50c rise in price of cigarettes
• 50c rise in a bottle of wine
• 8c a litre rise in price of petrol
• diesel stays the same
• €200 levy on employer provided parking spots
• FTB mortgage interest relief rises 5% to 25%
• Non-FTB’s subsidise FTBs mortgage payments as relief falls 5% to 15%

and I’m sure there are more to come out of the woodwork too.

The Minister announced that an income levy of 1% on all incomes up to just over €100,000 a year would be introduced. The levy will be 2% above this.

‘This levy will allow all income earners to contribute in a proportionate manner to the restoration of order and stability to the public finances,’ he said, adding that it would be kept under review.

Mr Lenihan also said that Cabinet Ministers and Ministers of State would be giving up 10% of their current pay.

If you believe the rumors and speculation, there will be income tax increases in tomorrows budget. Check back here tomorrow afternoon and I will posts updates as soon as Brian Lenihan has delivered his first budget to Dail Eireann.