Limerick Chamber welcomes Budget2016

Limerick Chamber has today (13^th Oct) welcomed Budget 2016. Commenting on the measures introduced by Limerick man and Minister for Finance, Michael Noonan, Limerick Chamber CEO Dr.James Ring said “we have extensively lobbied and engaged with government over the last number of months to ensure that our members and businesses across the Limerick region feel the benefit of the rising tide. We are delighted that our hard work is paying off with many of our recommendations adopted in Budget 2016”.

In a budget that tangibly recognises that entrepreneurs and small businesses are the drivers of economic growth, Dr. Ring welcomes “the pro-entrepreneurial move to reduce capital gains tax from 33% to 20%; this is something which we have advocated for a number of years. Additionally, the introduction of an ‘earned income credit’ for the self-employed goes someone to addressing current disparities; however, this can only be step-one in a programme that will deliver full equality.

Dr. Ring believes that the retail, hospitality and tourism sectors should feel an impact of Budget 2016 “with the retention of our 9% VAT rate for the hospitality and tourism sector.  The reduction of marginal tax rates below 50% will increase disposable income and inject more money into the circular flow. Our hope is that these measures will go some way in supporting highstreets across our towns and villages.

In a Limerick context Dr. Ring points out that “the increase in the Film Relief Tax cap, the extension of the agri-tax reliefs, and introduction of tax incentives for the construction of aviation services facilitates will support existing and new sectoral strengths of our region. We also welcome the announcement that IDA are to deliver a regional property programme to accompany the Regional Action plan for jobs and Limerick Chamber look forward to receiving more details of how this will be delivered over the coming weeks. The announcement that 600 more Gardai will be recruited is an overdue measure, and Limerick Chamber will be stepping up our campaign to ensure that Limerick is assigned a significant portion of these new posts.

Unfortunately the Chamber do have some concerns  “While we welcome the increase in the weekly threshold at which liability for employers PRSI increases from 8.5% to 10.75%; many businesses will be facing an increase in labour costs with the increase in minimum wage. Limerick Chamber will closely monitor the impact that this measure will have on our regional economy and numbers employed” concluded Dr. Ring.

Ends

For more information contact Edwina Gore e| egore@limerickchamber.ie or m| 083-4588466 

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