Tax changes announced in yesterday's Budget will give a welcome boost to shares in the leading banks and bookmakers quoted on the Irish Stock Exchange, analysts said today.
Minister for Finance Brian Cowen indicated that the €100 million a year bank levy imposed by predecessor Charlie McCreevy would expire after three years in operation.
The levy has cost AIB €29.5 million, Bank of Ireland €26 million and Irish Life & Permanent €12 million.
Bookmaker Paddy Power was also a big winner following the reduction in betting tax from 2 to 1 per cent with the duty borne by the industry.
The changes effectively means that the Irish betting market will become completely tax free from July of next year, but Paddy Power intends to go fully tax free from today.
Paddy Power shares, which have been under pressure recently following a profit warning, gained 3.3. per cent at the start of business this morning in the Iseq.
However, the financials were all marked down due to weak sentiment in the sector.