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Chambers Ireland: ‘Targeted rate cuts urgently needed for businesses’

VAT reductions, rate cuts and halving the level of capital gains tax for entrepreneurs would increase consumer confidence say Chambers Ireland.

CHAMBERS IRELAND IS to present its ten point plan for micro, small and medium-sized enterprises to the Oireachtas Committee on Jobs, Enterprise and Innovation today.

Speaking to, the Deputy Chief Executive of Chambers Ireland Sean Murphy said there were a number of things they would be suggesting to the committee.

VAT reductions

“Following our consultations for the report, one thing we think could help boost some sectors is a reduced VAT rate on housing repairs, maintenance and improvements, similar to the one that was introduced for the tourism sector,” said Murphy.

“There are plenty of people that want to do housing repairs to their home, perhaps get a new kitchen, re-tile the bathroom or even putting on an extension. We propose that a VAT reduction on works up to €50,000 could give a big boost to retail sectors. We are in year seven of this recession and people are afraid to spend. We need to inject some confidence back into the consumer,” he said.

He said they will also be suggesting that targeted rate cuts for businesses in town centres be implemented, stating:

In places like Athlone, the local authority rates charges are even more than the rent charges – this is doing nothing to support small and medium businesses. We need targeted rates reductions in areas like this.

Halving the level of capital gains tax for entrepreneurs to 16.5 per cent is another item they they believe could stimulate business. “Capital gains tax has gone to 33 per cent, that is very high and it is diminishing the chances of  the owner wanting to sell on his or her business – perhaps to someone who can move that business on to the next level, thus increasing tax for the government and increasing job creation”.

Read: Property sector accounts for almost half of outstanding business loans>

Read: Councils take €311 million hit as commercial rates are written off>

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