LONDON (MNI) Irish Minister for Finance Brian Lenihan has presented
the Irish parliament with his 2011 budget which is aimed at reducing the
country’s E19 billion deficit in 2010, by E6 billion in 2011.

“As outlined in the Plan, E6 billion of the overall adjustment is
being made in today’s Budget. The scale of this adjustment is demanding
but it demonstrates the seriousness of our intent,” Lenihan told the
House of Oireachtas.

Lenihan said that Ireland’s controversial 12.5% corporation tax
rate will remain in place.

“Two weeks ago, all political parties in this House supported a
motion calling for the maintenance of the 12% corporation tax rate. Our
commitment to the 12% rate was restated in the National Recovery Plan,”
he said.

“I welcome recent comments by European finance ministers who
understand the importance of this issue to Ireland. There will be no
change to Ireland’s corporation tax rate,” he added.

“The actions we have taken in Government over the last two years
have helped us to regain competitiveness. Wages have adjusted and costs
have fallen. More needs to be done but we are pricing ourselves back
into global markets and the performance of our export sector is the
proof of our success,” Lenihan said.

Key Measures Announced In Budget include:

* Top marginal tax rate to remain the same.

* A total of 25 tax reliefs to be abolished or restricted.

* Income levy, health levy abolished and will be replaced with
single universal social charge.

* Litre of petrol to rise by 4 cents, litre of diesel increased by
2 cents.

* Car scrappage scheme extended for a further six months

* All stamp duty exemptions abolished

* Flat rate of 1% stamp duty on all residential property
transactions up to E1 million. Increase of 2% duty on transaction over
that amount.

* All property-based tax reliefs to be effectively terminated by
2014.

* No change to corporation tax rate of 12.5%.

* Public service pensions above E12,000 to be reduced by average of
4 per cent.

* Salary cap of E250,000 for civil servants.

* 10 per cent reduction in pay of new entrants to public service.

* No reduction in the State pension this year.

–London newsroom: 00 44 20 7862 7492; ukeditorial@marketnews.com

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