Ibec, the representative group for Irish businesses, has published its Budget 2015 submission, in which it called for lower income and consumer taxes.
The group said that the latest growth figures mean a net adjustment of €200 million will be enough on Budget day, far below the planned €2 billion. This would reduce the budget deficit to 2.7% next year, comfortably under the 3% limit.
The group has called for €300 million worth of income tax reductions, a €100 million reduction in consumer taxes and the abolition of the pensions levy. It said the Budget must focus on reducing tax rates and boosting investment across the economy.
Ibec CEO Danny McCoy said: "We have an opportunity to put fresh momentum behind Ireland’s recovery. Now is the time to draw a line under the period of painful austerity. It was necessary, but the economy has entered a new phase. This needs to be reflected in the Budget.
McCoy said now is the time to give consumers a break, and put money back into peoples' pockets as well as kick start personal, commercial and public investment, which if done right will result in thousands of new jobs.
Ibec group Retail Ireland, which will be publishing its own submission during the summer, said that it fully suppots the Ibec submission.
Stephen Lynam, director of Retail Ireland, said: “A reduction in income tax will result in greater spending power for consumers, and retailers should reap the rewards of that.” He said a reduction in consumer taxes would also encourage greater spending, as the excise hikes in alcohol in recent years have been counter-productive with alcohol prices for moderate consumers amongst the highest in the EU.
Lynam added, “Combined, these measures will also have a big impact on consumer sentiment, which is a huge drive of retail spend - if consumers see that we are turning the economic corner, spending may follow.”
Along with its Budget 2015 submission, Ibec also launched a major new campaign, ‘An Ireland That Works’, which sets out the business priorities for the next phase of the recovery.
© 2014 - Checkout Magazine by Genna Patterson