The Government has revealed details of Budget 2022 and although most of the new money measures are set to take effect next year, some changes have already kicked in.
Some changes were voted in in the Dail last night and will impact people’s pockets from today.
Below, we'll run through what is different now and is likely to affect you:
Increase in price of cigarettes
Smokers were hit with a 50 cent increase in a packet of cigarettes and there will also be a pro-rate increase on other tobacco products.
A packet of 20 cigarettes will now cost people €15.
The increase is expected to be worth around €56 million to the Exchequer.
Carbon Tax
The cost of petrol, diesel and home heating fuels will rise from today as the Government increased the carbon tax by another €7.50 to €41 per tonne.
The carbon tax is expected to continue to rise over the next 10 years until it reaches €100 per tonne.
The carbon tax will increase by €7.50 if not more in every Budget until 2029.
People may have already noticed the price of diesel and petrol increase since midnight.
A 60-litre tank of diesel will increase by €1.48 from midnight and a similar tank of petrol by €1.28.
The increase in all home heating fuels will take effect from May 1 next year.
Taoiseach Micheal Martin told the Irish Mirror last night that the Government had to increase the carbon tax due to climate change.
He said: “The older generations have an obligation to make sure we leave this planet in a better way for young children and young people because we’ve seen already this summer the degree to which climate change is killing the planet, destroying people’s lives and we have to take action and every country does.”
Fuel Allowance
Public Expenditure Minister Michael McGrath announced a €5 increase to the fuel allowance, which also comes into effect from today.
The Government said it is giving an extra €5 as it acknowledges people are facing high energy price hikes.
Micheál Martin denied the Government was robbing Peter to pay Paul when it is hitting people with a carbon tax and only giving €5 towards soaring energy and fuel costs.
When it was put to him that the people of Ireland were struggling to heat their homes and make ends meet as the cost of living soars, he said this Budget “has to be seen in the context of us coming out of the pandemic.”
When put to him that the Government were robbing Peter to pay Paul by giving a €5 increase in social welfare and the State pension but hitting people with a €7.50 carbon tax, Mr Martin told the Irish Mirror: “We’re not, we’re not.”
