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SMEs call for Budget 2015 to focus on competitiveness

ISME also says keeping the 12.5% corporation tax is essential to the recovery.

Image: Mark Stedman/Photocall Ireland

THE GOVERNMENT MUST “encourage, incentivise and reward” small businesses in the upcoming budget, ISME (the Irish Small and Medium Enterprises Association) said today.

In its pre-budget submission, ISME called on the coalition to refocus on competitiveness, as well as support Ireland’s reputation for flexibility, by taking measures such as retaining the 12.5% corporate tax rate.

In a statement this afternoon, ISME Chief Executive Mark Fielding laid out the group’s vision for October’s budget.

This budget must focus on the transition from austerity to growth for businesses who have survived the recession and are now ready to capitalize on the recovery.
It is essential that Government understands that Ireland will only be able to revitalise its economy by creating new jobs in the private sector, 99% if which are SMEs.

ISME listed several specific policy proposals, including the following:

  • Reduce the marginal rate of tax to 40%
  • Allow an opt-in for the self-employed for PRSI benefits
  • Extend the start-up company relief scheme beyond 2014
  • Cut the employers’ PRSI rate from 8.5% to 4.25% for three years

The group also called on Finance Minister Michael Noonan to keep Ireland’s 12.5% corporation tax rate for companies trading in Ireland, in order to reaffirm that we have a “stable and transparent corporation taxation regime.”

ISME also warned that in “getting the balance right”, the government should avoid imposing additional axes, and be sure not to “jeopardise the recovery by continuing to fritter away savings on public expenditure excess.”

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Scroll down to read ISME’s pre-budget submission in full.

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Dan MacGuill

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