Budget 2023 is just around the corner as the Government discuss a range of new measures to help alleviate some of the pressures surrounding the cost of living crisis.
With that in mind, taxes on alcohol and cigarettes look as though they will not see an increase this coming year.
A senior source told The Irish Times that they did not think it was time to increase excise on products such as alcohol and cigarettes as this would further increase the burden on consumer spending.
READ MORE: All we know about Budget 2023 so far – Social Welfare changes, Child Benefit boost and extra €1,000
This comes as a major change in trends which has seen the cost of a pack of 20 cigarettes increase by 50c each year over the past seven budgets.
However, if a public-health rationale is put forward, an increase on cigarettes may be considered, although an increase in alcohol prices is said to be unlikely.
The Government is also working on a package of supports for tenants and landlords, which could see several tax breaks introduced.
One measure being considered is the reintroduction of a tax credit for renters, which was removed in 2017 and could save renters up to €1,440 annually.
Another consideration is allowing the local property tax to be deducted from rental income as an expense or allowing landlords to offset rental losses against other taxable income in the current year.
Meanwhile, the cost of living package looks set to see another €200 energy credit as well as a number of social welfare double payments.
This comes as one of the biggest reductions in income tax in almost a decade is to be introduced in this year's Budget.
Finance Minister Paschal Donohoe published the Tax Strategy Group papers last week, which stated plans to be examined by the Government during the last month of budget negotiations.
Among the recommendations is a €15 increase across the board on social welfare payments and introducing a new tax band that could save one million workers up to €1,000 a year .
All of the social welfare packages outlined in the Tax Strategy Group papers include a double-digit increase in weekly payments ranging from €10 to €15.
The first of which recommends a €15 increase across all payments, which would cost the State around €1.1 billion.
This would mean the majority of people receiving social welfare payments would receive €223 per week, while a person on the State pension would see their pay packet increase to €268 per week.
Another option under consideration is a €10 increase in all welfare payments along with a €10 hike in the Fuel Allowance and Living Alone allowance.
The Government is also to consider a once-off double payment of the monthly €140 child benefit sum as part of a cost-of-living package to be announced on Budget day.
Those in receipt of a child benefit payments could be in line for a €280 one-off payment if they have one child or €560 if they have two.
If the Government agrees to the policy, parents will receive a huge boost, with a family with three children eligible to receive €840.
A family with twins would also get €840 as they receive one-and-a-half times the normal rate per child.
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