€200 Car Levy Part of Irish Finance Bill

The 2009 Irish Finance Bill published yesterday included transport and income levies for the majority to Irish taxpayers.

Minister for Finance Brian Lenihan announced a €200 car parking levy on all employees with free car parking spaces provided by their employers.

The levy will apply in countries Limerick, Cork, Waterford, Dublin and Galway and the Minister will have the power to designate which areas within these boroughs the levy will be applied to.

The Minister also confirmed that the unpopular travel tax proposed in October's Budget will come into effect in March 2009. The general travel tax rate for passengers travelling from Irish airports will be €10 per passenger, with a lower rate of €2 for shorter journeys 300kms or less from Dublin.

Details of the 1% Irish income tax levy announced in the Budget were also outlined in the Finance Bill. The 1% levy will apply to all people earning between €18,304 and €100,100 per year. Those earning above €100,100 will pay a 2% levy and those earning above €250,120 will pay 3%. The income tax levy in Ireland will not apply to social welfare payments, those with a medical card or people over 65 who earn less than €20,000.