EVERY YEAR IRISH people tune in to the Budget to see if there will be any price hikes in what the government often refer to as ‘luxury items’.
Booze, fuel or cigarettes are easy targets for tax increases, but increasing the cost doesn’t go down well with the public.
This year, much to the relief of many, there was only a rise in one of them, cigarettes.
However, the excise on these items can bring in big bucks to the Exchequer.
With the government needing cash for big-ticket items, you can see why it would be tempting to add a couple of cent on to each.
The National Children’s Hospital is envisaged to cost €650 million, with an additional €50 million needed for equipment. Scrapping Irish Water (if the government goes down that road) would cost about €900 million.
There is also the cost of the Garda pay deal, approximately €50 million, which the government said has to come out of the existing budget for the Department of Justice and other departments (not to mention all the possible public pay demands that could be coming down the line in 2017).
With the government stating there is only a certain about amount of cash in the pot, ahead of every Budget the government works out what excise increases would bring in.
This is called the Ready Reckoner.
Here’s what 10 cent increase on alcohol, petrol and cigarettes add to the State coffers.
Minister for Finance Michael Noonan said the Ready Reckoner (which is compiled by the Revenue Commissioners) gives a wide range of detailed information, including excise increases on fuel, alcohol and tobacco, to government.
So, would you be willing to pay an extra 10 cent on items such as wine, beer and diesel?
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