With nothing likely to escape Brian Lenihan’s axe in the upcoming budget, punters are speculating on the bad news to come.
Paddy Power is offering odds of 1/3 that the high rate of income tax could be increased by as much as 2% or 3%, and 10/11 that the lower rate of income tax will be increased by 1% to help the Government shave €3billion off the national debt.
The usual suspects cigarettes and alcohol are also expected to take a hit with Paddy Power quoting 2/5 that there’ll be an increase in the duty on cigarettes and odds-on at 1/2 that the duty on spirits, beers and wines also go up.
The good news for businesses is corporation tax looks set to remain the same at 1/6.
As well as betting on the impending 2011 Budget, Paddy Power have also revisited the odds on a National Government being formed in response to numerous requests from political punters.
In February 2009 a National Government was available at odds of just 4/1, these odds have now increased to 16/1 for a National Government of Fianna Fail, Fine Gael and Labour formed before the next general election and 8/1 it’s formed straight after.