The National Training Fund Levy will increase by 0.1% per annum over the next three years, bringing the Levy from 0.7% to 1% by 2020. The additional revenues raised will be used to fund the higher and further education sectors. The 0.1% increase in the Levy in 2018 will result in higher Employer PRSI rates applying to earnings of employees in Class A and Class H employments.
A number of measures to incentivise the purchase of electric cars were announced. These include, a VRT relief measure and 0% BIK charge on electric cars provided by employers. The BIK measure will apply for one year to allow time for a comprehensive review of BIK on motor vehicles to be undertaken.
A VAT refund scheme to compensate charities for input VAT they incur on their purchases will be introduced in 2019, in respect of 2018 expenses.
A tax on sugar-sweetened drinks will be introduced from 1 April 2018. It will apply at a rate of 30 cent per litre where the sugar content is above 8g per 100ml and 20 cent per litre where the sugar content is between 5g and 8g per 100ml.
The VAT rate on sunbed services will increase from 13.5% to 23% from 1 January 2018.
The Finance Bill has introduced the power to enable for the making of Regulations which relate to the provision of educational services including vocational training and retraining. The legislation has also been updated to clarify and reaffirm the application of the exemption to all bona fide cases of vocational training and retraining activities.
