Tax cuts, grants and loans to help businesses and consumers

Tax cuts, grants and loans to help businesses and consumers
Vat cuts, business loans and the suspension of rates are all designed to help businesses hit by the pandemic. File Picture.

There are few surprises in the €7.4bn stimulus plan, but there was one curveball, for certain.

The government has cut the flat rate of Vat from 23% to 21% across the board for six months at a cost of €440m - a move sure to gladden the hearts of consumers and the businesses they spend with.

In terms of business supports, all commercial rates for the six months up until end September 2020 will be waived at a cost of €600m. 

Meanwhile, the restart grant, first brought in at the start of the pandemic, is to be expanded by €300m to €550m, with the payment level being brought to €25,000, while some firms which have already received payments may be eligible for more.

Separately, the pre-pandemic credit guarantee scheme, which was worth €150m, will become the new Covid-19 credit guarantee scheme. Worth €2bn, it will see the State guarantee business loans ranging in size from €10,000 up to €1m to the tune of 80% of their value with the banks, for a maximum term of six years.

Finally, the future growth loan scheme is rising to €500m, meaning businesses with fewer than 500 employees can invest for longer at “competitive” rates.

More in this section