RPT-FACTBOX-Key measures in Ireland’s four-year austerity plan

(Repeats with no changes)

DUBLIN, Nov 24 (BestGrowthStock) – Ireland set out its four-year
plan on Wednesday to make 15 billion euros in savings by 2014
and bring down its record deficit.

EXPENDITURE

Two thirds of the budgetary adjustment will be achieved
through spending cuts, totalling 10 billion euros over the
four-year period.

DAY-TO-DAY SPENDING

Spending savings include slashing current expenditure by 7
billion euros by 2014, to bring it back to 2007 levels.

CAPITAL SPENDING

Capital spending will be trimmed by 3 billion euros by 2014.

PUBLIC SECTOR

The public sector will be cut back to levels last seen in
2005, with staff numbers to be reduced by 24,750 or 8 percent on
end-2008 levels. The public sector bill will be decreased by 1.2
billion euros.

TAXATION

The government will bring in 5 billion euros through tax and
revenue-raising measures such as broadening the tax base and
abolishing or curtailing a range of tax exemptions and reliefs.

It said 40 percent of the measures will be front-loaded.

CORPORATION TAX

The government said it remains committed to the 12.5 percent
corporation tax.

INCOME TAX

Approximately 1.9 billion euros will be raised from income
tax. Changes will bring in an income tax structure last seen in
2006.

VAT

VAT will increase to 22 percent in 2013 from 21 percent,
with a further increase to 23 percent in 2014. This will bring
in 620 million euros.

PROPERTY

The government will introduce a new ‘Site Value’ tax, which
will yield 530 million euros. An interim measure will involve a
fixed local service contribution of 100 euros per annum per
household. The final property tax will be introduced in 2013
when valuations have been completed.

MINIMUM WAGE

The level of the national minimum wage will decrease by 1
euro per hour to 7.65 euros.

PENSIONS

The government is aiming for a 700 million euro full-year
reduction in pension tax spending.

The annual earnings cap for pension contributions will be
cut by almost 25 percent to 115,000 euros next year.

The plan calls for an abolition of employee PRSI and Health
Levy relief on pension contributions in 2011.

SOCIAL WELFARE

A range of measures will be introduced to achieve social
welfare savings of 2.8 billion euros.

STUDENT FEES

The government plans to raise student fees by replacing a
Student Services charge with a flat higher education student
contribution of 2,000 euros by 2011.

For highlights of the plan, click on [nLDE6AN0LJ]

(Reporting from Dublin Newsroom; Editing by Jan Harvey)

RPT-FACTBOX-Key measures in Ireland’s four-year austerity plan