Newspaper VAT to be scrapped in Budget
GOVERNMENT is set to scrap VAT on newspapers in this afternoon’s budget, government sources told The Star last night.
Last week, the Taoiseach said he was “positively disposed” towards getting rid of the tax that is crippling so many media outlets, especially local papers, every week.
He said the issue was “on the table” for discussion ahead of the Budget and it now looks like his position has swayed other ministers.
With the backing of the Taoiseach now confirmed, the industry can be optimistic that the tax should be axed today.
Survival
The yield to the Government from the 9 per cent VAT charged on papers, €18million, is relatively small beer to the Exchequer in the grand scheme of things.
But it could mean the difference between survival and bankruptcy to so many local and provincial papers that are teetering on the brink of collapse.
Mr Martin told reporters in New York on Friday: “We are certainly examining that, as we said when we launched the Media Commission report the other day, that we would do everything we can positively to enable media to survive, particularly print media, in what is a very difficult environment, so we will be examining that positively.”
EVERY pensioner, carer, disabled person and those on the dole will win big in the Budget today as universal €12 a week social welfare hikes were agreed last night.
This measure alone will cost close to €1billion next year, with the increases kicking in from January 1.
Before that, all welfare recipients will receive a double payment under the cost of living package in the coming weeks, and another one at Christmas.
Child benefit will also likely see double payments as part of the same bailout.
Renters will be looked after at last in today’s Budget, with a €1,000 credit over two years expected to be announced after more late night negotiations with Housing Minister Darragh O’Brien.
And all households will see cashback credit worth €600 on their energy bills in the next six months.
Students and parents, who more often pay their college fees, were given some much-needed relief.
Higher Education Minister, Simon Harris, got Finance Minister, Paschal Donohoe, to give every student €1,000 each off their tuition fees with immediate effect.
Costs for sending younger children to school will come