Several Budget measures announced in the Dáil yesterday took effect from midnight Wednesday, reports RTE.
Last night, TDs approved a cut in the VAT rate on the sale of finished apartments, reducing it from 13.5% to 9%.
From the same time, the cost of petrol and diesel rose by roughly two-and-a-half cent per litre, while the price of tobacco products went up by 50c.
Today, discussions on Budget 2026 continued in the Dáil, reports RTE.
Opposition parties will be able to challenge the Government on various Budget provisions during Leaders’ Questions.
In the meantime, Taoiseach Micheál Martin defended Budget 2026 against criticism from the Opposition, arguing that continuing to provide one-off supports like electricity credits was “not sustainable”, reports RTE.
He argued that lowering VAT for the hospitality industry would serve as a “significant fillip”, especially for cafes and restaurants in rural regions where trade is often seasonal.
The VAT rate for food and catering services, as well as hairdressing, will fall from 13.5% to 9% starting 1 July 2026 — costing €232 million in the coming year and €681 million in a full year, reports RTE.
During an appearance on RTÉ’s Nine O’Clock News, the Taoiseach said the Coalition had to focus on protecting employment in the face of global economic instability, and pointed out that wages are forecast to rise by 5% this year.
Meanwhile, additional information has been released regarding Budget changes affecting students.
The income cap for qualifying for the third-level SUSI grant has been raised from €115,000 to €120,000, reports RTE.
Grants for students living 30km or more from their college will increase by between €200 and €430.
According to the Department of Further and Higher Education, 30,000 students are expected to benefit. There will be a pro-rata adjustment for this academic year, reports RTE.
The SUSI contribution grant for postgraduates is set to rise from €4,000 to €4,500.
More than 1,100 extra places will be added to healthcare-related courses, reports RTE.
€1 million is being dedicated to student mental health services and healthy campus projects, while €3 million is being earmarked for disability support. This includes €1 million for higher education and €2 million for further education and training institutes.
Minister for Finance Paschal Donohoe and Minister for Enterprise Jack Chambers will be answering listener queries on RTÉ’s Today with Claire Byrne from 10am this morning, reports RTE.
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