Brian Lenihan Jnr (Dublin West, Fianna Fail)

Full details are in the summary of budget measures. We need commercial development and investment if we are to create jobs and stimulate economic activity. We must also give an impetus to the commercial property market. This cut is my contribution. The rate will stay at 6% and it will not go lower in the lifetime of the Government.

Second, I am financing this measure through an increase of 2% in the capital gains tax rate. This increase also mirrors the level of income levy being imposed on higher earners and it is equitable to match this levy increase effectively with an equivalent rise in the rate of capital gains tax. I will continue to review the rate of capital gains tax on an ongoing basis.

Third, I am bringing forward the payment date in 2009 for individuals paying capital gains tax. This will generate €200 million in 2009 on a once-off basis.

Farming Taxation

For the farming sector, I propose to extend for a further two years the farmers stock relief, farm pollution control relief and farm consolidation relief.

The stamp duty relief for young trained farmers will be extended for a further four years to 2013. The farmers' flat rate addition for VAT is being retained at 5.2% for 2009.

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