TAX RELIEFS on medical expenses, which were cut in the Budget and came into effect yesterday, will add hundreds to the annual bills of those earning more than €36,500.
Dozens of medical procedures and operations, including laser surgery, dental appointments and private hospital childbirths, will become significantly more expensive.
Up to New Year's Eve, people were able to claim back 41 per cent of the cost of a medical bill if they paid the highest rate of tax - although little more than 50 per cent of taxpayers actually did so.
From yesterday, however, all taxpayers, regardless of whether they are paying the standard or marginal rates, will be able to claim for 2009 medical expenses at the standard rate only.
The losses will be significant. For instance, a person earning more than €36,400 will now get €300 back on a €1,500 medical bill, rather than €615 as before.
Large numbers of people are believed to have tried to get major dental work or other types of treatments carried out by the New Year's Eve deadline.
The cut in reliefs became inevitable after larger numbers of people began in more recent years to claim them back from the Revenue Commissioners.
Nearly 140,000 taxpayers claimed €55 million worth of medical refunds from the Revenue in the first six months of last year, compared with just under €58 million claimed for the full year of 2007 and just €33 million in 2006.
Children paying for the nursing home bills of their parents will continue to be able to claim back the bills against the top tax rate until 2010, when the Government's Fair Deal Scheme is due to be put in place.
However, people can still claim medical bills dating back to 2004 in their 2008 tax returns at the higher rate.
The decision to limit claims to only four years was taken for the administrative convenience of the Revenue.
The cut in tax relief is just one of a number of higher health bills announced in October and only coming into force now, that are likely to spur public criticism.
The fee for attending accident and emergency wards jumps by one-third for those turning up without a GP's letter, to €100, while people without medical cards will also pay significantly more for a public hospital bed.
Meanwhile, the 1 per cent levy on incomes up to €100,000, which rises up to 3 per cent for higher earners, will also start to be applied from this week.
Fares for Luas, Dublin Bus and some road toll services were increased yesterday.
However, on a positive note petrol and diesel prices have fallen substantially in recent weeks.
New cars under 2.5 litres will be 4 per cent more expensive because of State tax changes and 5 per cent for bigger vehicles.
Minister for Finance Brian Lenihan hopes to raise €40 million.
The parking space levy - €200 for each driver who enjoys a car- park space in the major cities, beginning in Dublin - will also come into force this year.
Mr Lenihan must personally designate the areas to be covered by the new fee, although it will not apply in Dublin South, Fingal or Dún Laoghaire-Rathdown in Co Dublin.
The air travel tax, which imposes a maximum of €10 on passengers leaving Irish airports, comes into effect at the end of March.
