Consumers hit to raise extra €1bn in taxes

MICHAEL Noonan used his first budget to raise an extra €1 billion in taxes by targetting consumers and households but extending relief for property owners and leaving income tax untouched.

Opening his speech with a reminder that Ireland signed a treaty restoring its sovereignty 90 years ago to the day, the Finance Minister said his budget would help boost recovery.

Indirect taxes to raise funds will squeeze money out of the old reliables, such as petrol, cigarettes and motor tax. The standard rate of VAT will be also raised by 2 percentage points to 23%.