Supporting enterprise, addressing public sector reform a prerequisite to stimulate economic growth.
Despite recent international comment, 12.5% corporate rate must be reaffirmed.
ISME, Tuesday 29th July 2014.
In its pre-budget submission issued today, (Tuesday 29th July), ISME, the Irish Small & Medium Enterprises Association, called on the Government to refocus on competitiveness in its deliberations on Budget 2015. The Association counselled that this year’s Budget needs to reflect the vital importance of the SME sector and the significant contribution the sector can make to secure a better future.
Speaking at the launch ISME Chief Executive Mark Fielding said, “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. The 2015 Budget must get the balance right between generating savings, primarily through cost savings and productivity gains rather than imposing additional taxes, which will hinder economic performance”.
“To do this we must contain and reduce the cost of running the country, which will allow us to curtail tax rises, incentivise business and thereby unleash the potential of the SME sector. It is vital, therefore, that this year’s Budget dispels the uncertainty and provides a clear outline and direction on how the Government intends to deal with the public finances, business costs, lack of bank credit and unemployment”. “It is also important that we reaffirm that Ireland has a stable and transparent corporation taxation regime. It is therefore imperative that the Minister for Finance reaffirms the status of the 12.5% corporation tax rate for companies trading in Ireland.”
“The ISME pre-budget submission focuses on encouraging, incentivising and rewarding enterprise and work, which will stimulate economic growth and job creation. Wealth generating enterprise is the catalyst for the virtuous cycle of increased tax revenues, reduced welfare costs and economic growth.”
“However, it serves no one to jeopardise the recovery by continuing to fritter away savings on public expenditure excess, therefore we see the reform of the public sector as a vital part of the Government budget strategy.”
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