The government has announced a cut to the VAT rate and an extension of the help to buy scheme as part of the July stimulus.
It’s worth more than €5 billion, with an additional €2 billion in loan guarantees.
50 measures have been included in the package including a reduction of the VAT rate. It is going to be cut from 23% to 21% between September and February.
First-time buyers will also get a boost.
For the rest of this year they will be able to get up to 10% or €30,000 back on the cost of a new home under the help to buy scheme - up from 5% or €20,000 at present.
Meanwhile, the pandemic unemployment payment is being extended until April 2021.
Payment rates for the PUP will be gradually tapered based on linking payment to prior employment earnings.
From September 17th there will be three rates of payment:
For people who previously earned less than €200 per week: €203
For people who previously earned between €200 and €300 per week €250
For people who previously earned over €300 per week €300
There's to be a staycation subsidy back on 625 euro spent holidaying in Ireland which will take the form of a tax credit next year.
#StayAndSpend Initiative will see taxpayers availing of tax credit of 20% when spending more than €25 in our restaurants, cafés, hotels & B&Bs from Oct-April. Maximum spend of €625 will mean €125 back in your pocket, giving much needed support to our businesses #JobsStimulus https://t.co/Isarf4LFNa
— Paschal Donohoe (@Paschald) July 23, 2020
There will be access to grants of up to 25,000 euro for businesses as well as low-interest loans.
