ARTICLE AD BOX
By Shane Harrison
BBC News Dublin Correspondent
Image source, PA Media
Paschal Donohoe says the Republic of Ireland has a large budget surplus
The Irish finance minister has unveiled one of the biggest giveaway budgets in the country's history.
Paschal Donohoe told the Dáil (Irish parliament) that he was in a position to do so because the country had a large budget surplus.
Most of that comes from a huge increased tax-take from corporations, particularly a small number of American tech companies.
Some of that income is to go towards a "rainy day" national reserve fund.
Mr Donohoe announced an income tax package to the value of more than €1.1bn (£963m).
Unlike the UK, Ireland is not borrowing to fund tax cuts.
Image source, PA Media
Image caption,People will now start paying the higher 40% rate of tax on income over €40,000
The minister said his budget was focused on helping families and businesses facing the cost-of-living crisis arising from after effects of the Covid-19 pandemic and the Russian invasion of Ukraine.
People will now start paying the higher 40% rate of tax on income over €40,000 (£35,731).
Tax credits will be given to home owners for fuel and tax on petrol and diesel at the pump will remain unchanged.
A packet of 20 cigarettes will go up by 50 cents (45p).
Mr Donohoe also announced that VAT on newspapers would be reduced from 9% to 0%.
He said there were many risks to the country's finances but he concluded: "We can and should be confident about our future."