Reduced Income Taxes a Boost for Consumer Confidence

Reduced Income Taxes a Boost for Consumer Confidence
More Direct Action Required To Support SME And Jobs Growth

A large turnout for the annual PwC Budget 2015 Breakfast Briefing, held in association with Wexford Chamber, in the Talbot Hotel, Wexford, last Wednesday heard from the team at PwC who completed an in-depth analysis of Budget 2015 and what it meant for them and their business.

Billy Sweetman highlighted the changes to income tax and capital gains tax, Brian Hogan provided information on the revisions planned for corporate tax, VAT and excise and Paul Hennessy outlined the challenges that lie ahead for the government.

Wexford Chamber welcomed the Government’s decision to commence income tax reductions but  an opportunity to do more to help SMEs create jobs has been missed.

Martin Doyle, President Wexford Chamber  said, “The Government’s commitment to reducing personal taxes will improve consumer confidence which will in turn contribute to economic growth. However, there was little else in this budget to encourage most job creating entrepreneurs. Last week’s National Policy on Entrepreneurship gave a strong signal that Government understands the need to improve the cultural perception of entrepreneurs as job creators, not as easy sources of excessive taxation. The reality is that SMEs and entrepreneurs create employment and we must do more to support them if we want to continue to reduce our unemployment numbers. We anticipated more measures than were delivered in this budget to support that goal. Capital taxes remain too high and a more balanced and urgent focus on the job creating engine of SMEs is required.”

“Efforts to ignite the construction sector are welcome. Chambers have consistently called for the abolition of the 80% windfall tax and this change, combined with the expansion of the RMI scheme and the capital expenditure measures announced by Minister Howlin, will be positive.” “The Government was correct to resist ludicrous calls by Unions to increase VAT on hospitality for nebulous reasons which would have threatened growth in that sector.”

“While there is no doubt this budget has some positive measures it is a missed opportunity to support Irish entrepreneurs and we will be continuing to press for further supports for SMEs as the Finance Bill progresses,” he concluded.

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