The Government has decided to restore the standard rate of VAT to 21 per cent from March 1st 2002, the Minster for Finance Mr McCreevy announced today in his Budget.
Excise duty on petrol and diesel will be increased by 5p per litre from midnight tonight. Excise duty on cigarettes will be raised by 10p per packet of 20, with pro rata increases in other tobacco products, also from midnight tonight.
The excise duty on cider has been raised to the same level as that for beer.
Mr McCreevy said the overall impact on the Consumer Price Index of the increases in VAT and excises is estimated at 0.9 per cent, giving an average inflation rate for next year of 4.2 per cent.