Budget 2013 – IMO Summary
Overall funding of Health
- €13.627 billion in current funding and €397 million in capital funding for the Health service in 2013. This includes:
- €50 million allocated to the Programme for Government with a breakdown of €35 million allocated for new mental health services and €15 million allocated to provide free GP care for people with certain prescribed illnesses.
€781 million in saving s to be achieved in 2013. This will be made up of:
- Reduction in the cost of Primary Care Schemes (€323 million)
- Pay related saving (€308 million)
- Increased generation of private income in public hospitals (€65m)
- Net savings on Department’s Vote (€60 million)
- Savings on procurement (€20 million)
- Other savings (€5 million)
The reduction in cost of Primary Care Schemes is detailed under the following:
|Drugs Payment Scheme
|Reduction in Cost of Drugs and other prescribed items
Changes to Primary Care Schemes
OTHER GENERAL REVENUE MEASURES
- The Employee's PRSI-Free Allowance of €127 per week (PRSI Class A, E and H) and €26 per week (PRSI Class B, C and D) will be abolished. (January 2013)
- Employees who earn €352 or less per week continue to have no liability to make a PRSI contribution.
- Currently, employees who pay PRSI at Classes B, C and D are exempt from PRSI on self-employed earned income (from a profession or trade) and any other unearned income (for example, rental income.) This exemption will be abolished. All such income will become liable to PRSI at the rate of 4%. (1 January 2013)
- Unearned income for everyone else will become subject to PRSI in 2014. This means that PRSI will be payable on income generated from wealth such as rental income, investment income, dividends and interest on deposits and savings. (2014)
- The minimum annual PRSI contribution for people with annual self-employed income over €5,000 will increase from €253 per annum to €500. (2013)
- Tax relief will end for pension schemes providing over €60,000 per annum from 2014
- Tax relief on pension contributions will continue at the marginal rate of tax
- On passing of the Pensions Bill 2013, for a 3-year period, those with AVCs will have the option to withdraw up to 30% of the value. Amounts withdrawn will be subject to tax at the marginal rate.
- From 1st January 2013 top slicing will no longer be available on ex-gratia lump payments in respect of termination and severance payments where the non-statutory payment is €200,000 or over. At present the individual’s average tax rate for the three years applies rather than the marginal rate of 41%.
Local Property Tax
- From 1 January 2013 the Household Charge is to be abolished
- From 1 July 2013 a Local Property Tax is to be introduced.
- Property valued up to €1m is to be taxed at .18%
- Properties valued over €1 will be liable for 0.18% on first €1million and 0.25% in the balance.
From midnight 5th December 2012 the following increases to excise duty applies:
- Increase of 10c per pint of cider or beer
- Increase of 10c per standard measure of spirits
- €1 on 75cl bottle of wine
- 10c per 20 pack of cigarettes
- 50c per 25gm pack of roll your own tobacco