Old reliables and tax reliefs to hit consumers

CONSUMERS will feel the pinch after tomorrow’s budget with hikes expected on the “old reliables” and the removal of certain tax reliefs.

However, the Government is not expected to increase the VAT rate until 2013 when it will be hiked to 22% and, further, to 23% in 2014. These changes will bring in an estimated €620 million.

Smokers and drinkers can, however, expect some increases on the “old reliables” with the Government already saying a number of changes will be made to excise duties and licences in 2011 to the value of €110m.