Budget 2015 Must Capitalise on Recovery

Chambers Ireland has said that Budget 2015 provides an opportunity to ensure that economic growth and job creation are balanced across the economy and the country.

Chambers Ireland Chief Executive Ian Talbot said “While some regions and sectors of the economy have seen a nascent recovery, there are many areas still facing tough economic conditions. Government must ensure that measures introduced in Budget 2015 support local economic development, encourage job creation and promote balanced growth.”

“It is vital that no new taxes are introduced in Budget 2015. Certain taxes, such as marginal tax rates and Capital Gains Tax, should be reduced to incentivise investment, lessen the cost of employment and encourage job creation. Anything that acts as an impediment to employment must be removed. The current system of social welfare must continue to be reformed to help people break their dependency on welfare and support them in moving to part time or full time employment”

Chambers Ireland has made a number of recommendations to stimulate growth and support job creation including:

• Abolish the 80% windfall tax on rezoned land with any gains falling under Capital Gains Tax rules. This will facilitate much needed residential development in areas where there is pent up demand and stimulate the construction sector.
• Reduce marginal tax rates to below 50% to reward employment, support enterprise, and attract high value FDI jobs.
• Reduce Capital Gains Tax to 20% for active investments and improve the Employment and Investment Incentive and the Seed Capital Scheme to encourage entrepreneurs across the country to invest and create jobs.
• Reinstate the lower rate of employers’ PRSI for Class A staff to encourage businesses to take on new employees.
• Maintain and give certainty on the 9% VAT rate in the hospitality sector which supports the national hospitality and tourism industries.

Martin Doyle, President of Wexford Chamber said “Government’s focus must be on the overall goal of getting the country back to work. Impediments to work must be removed, the cost of employment reduced and measures to stimulate growth introduced if we are to create employment and once again become a vibrant economy.”

Please find Chambers Ireland’s full Pre Budget Submission attached.