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• Drink cut is last minute budget surprise

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  Helena Deane    Group moderator

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  Drink cut is last minute budget surprise

  A cut in excise duty to combat cross border shopping has emerged as a last minute surprise in the budget package to be unveiled by finance minister Brian Lenihan today.
  
  The cut will seek to make it less attractive to buy spirits, and possibly other drinks, north of the border.
  
  The addition of the drink measure is seen as a recognition that the massive difference in alcohol prices on the two sides of the border is leading to huge levels of buying, with even publicans travelling north to stock up.
  
  The loss to the Exchequer is so significant that a cut in excise duty in the south is likely to be seen as resulting in little reduction in net revenue, or even a gain.
  
  The large difference in drink prices is also seen as providing the primary motive for many cross border shopping journeys, with people then buying other goods since they are there.
  
  Mr Lenihan is planning to make savings of 4bn euro in his budget today, with most coming from spending cuts rather than from extra taxation.
  
  The minister admitted last night that the budget would be very difficult but he forecast that, "it is going to be the last of the very difficult budgets".
  
  His package will include 1.3bn euro in pay cuts for the public service, ranging from 5 per cent for those on average pay to 15pc for the highest paid.
  
  There will also be a 5pc cut in fees paid by the state to lawyers, doctors and other professionals.
  
  Ministers will also take a 15pc cut while the Taoiseach's pay will be reduced by 20pc.
  
  Cuts in social welfare rates will range from around 4pc for those claiming jobseekers' allowance to 10 per cent in child benefit.
  
  The old-age pension will be left untouched.
  
  There will be a rise of around 10 euro in hospital emergency charges, and a 50c fee on every prescription for medical card holders.
  
  A carbon tax will also be introduced, pushing up the price of petrol, diesel and home heating fuels.
  
  Among a limited number of economic stimulus measures likely to be included are a limited car scrappage scheme.
  
  Mr Lenihan is to begin delivering his speech at 3.45pm.
  
  The Taoiseach Brian Cowen last night held meetings with Independent TDs Noel Grealish, Michael Lowry and Jackie Healy-Rae in an effort to secure their support for the budget.
  
  (Bizworld)
  
  • 09 Dec 2009, 1:32 pm
  Helena Deane wrote: > A cut in excise duty to combat cross border shopping has emerged as a > last minute surprise in the budget package to be unveiled by finance > minister Brian Lenihan today. > > The cut will seek to make it less attractive to buy spirits, and > possibly other drinks, north of the border. > > The addition of the drink measure is seen as a recognition that the > massive difference in alcohol prices on the two sides of the border > is leading to huge levels of buying, with even publicans travelling > north to stock up. > > The loss to the Exchequer is so significant that a cut in excise duty > in the south is likely to be seen as resulting in little reduction in > net revenue, or even a gain. > > The large difference in drink prices is also seen as providing the > primary motive for many cross border shopping journeys, with people > then buying other goods since they are there. > > Mr Lenihan is planning to make savings of 4bn euro in his budget > today, with most coming from spending cuts rather than from extra > taxation. > > The minister admitted last night that the budget would be very > difficult but he forecast that, "it is going to be the last of the > very difficult budgets". > > His package will include 1.3bn euro in pay cuts for the public > service, ranging from 5 per cent for those on average pay to 15pc for > the highest paid. > > There will also be a 5pc cut in fees paid by the state to lawyers, > doctors and other professionals. > > Ministers will also take a 15pc cut while the Taoiseach's pay will be > reduced by 20pc. > > Cuts in social welfare rates will range from around 4pc for those > claiming jobseekers' allowance to 10 per cent in child benefit. > > The old-age pension will be left untouched. > > There will be a rise of around 10 euro in hospital emergency charges, > and a 50c fee on every prescription for medical card holders. > > A carbon tax will also be introduced, pushing up the price of petrol, > diesel and home heating fuels. > > Among a limited number of economic stimulus measures likely to be > included are a limited car scrappage scheme. > > Mr Lenihan is to begin delivering his speech at 3.45pm. > > The Taoiseach Brian Cowen last night held meetings with Independent > TDs Noel Grealish, Michael Lowry and Jackie Healy-Rae in an effort to > secure their support for the budget. > > (Bizworld)
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