Ibec, the group that represents Irish business, today launched its full Budget 2019 submission in which it called on Government to introduce measures which promote competitiveness with a focus on support for the indigenous business sector and higher education.
Commenting, Fergal O’Brien, Director of Policy and Public Affairs, said: “Ireland is in a new phase of economic development. Rising prosperity offers greater choices but given our recent history it brings with it greater responsibility too.
“In the first instance, the Government needs to bring a new focus to indigenous business. Ireland’s tax base has become dangerously concentrated, so the time is right to make a step-change in how we treat our indigenous business sectors through the tax system. We must also recognise the significance of the recent US business tax reforms for the foreign direct investment sector. The most effective response will be to underline the certainty of the business tax regime and intensify the emphasis on competitiveness.
“Furthermore, although education has been central to Ireland’s business model, the country is falling further behind its counterparts in higher education, as international rankings show, which is a real cause for concern in the business community. In the light of this worrying trend, Ibec believes that €250 million earmarked for the ‘rainy day’ fund should be redirected to investment in the higher education sector in 2019.”
Ibec’s submission calls for a range of policy measures including:
- · A new 12.5% capital gains tax rate for entrepreneurs with no limit on lifetime gains.
- Ibec Budget Submission 2019.pdf - 482 Kbytes
· Follow Sweden’s lead in ambitious treatment of share-based remuneration in new firms.
· A pre-approved accelerated capital allowance for firms investing to prepare for Brexit.
· Incentivise the next wave of FDI through accelerated supports for robotics; and broadening the industrial buildings allowance to include data centres.
· Ensure that workers on the average wage are kept out of the top rate of tax.
· Supports for de-carbonisation through renewable heat technology, capital allowances for natural gas in our transport fleet, and energy retrofit of existing building stock.
· A new site value tax to replace the existing commercial rates and the vacant sites levy and a permanent reduction in VAT for large-scale build-to-rent developments.