Alternative 10 Point Plan for SME’s launched

 

Chambers Ireland has today (10/04/13) launched an An Alternative 10 Point Plan for Micro, Small and Medium-Sized Enterprises. The plan is a response to the 10 Point Tax Reform Plan announced by the Government in Budget 2013.

 

Speaking about the proposal, Maria Kelly, Limerick Chamber Chief Executive said, “The 10 point plan announced in Budget 2013 lacked the necessary ambition to create transformative change. The measures suffer from a number of problems: too many are sector specific; too many impose unnecessary limitations and too many are little more than extensions of existing schemes.”

 

In response, Limerick Chamber engaged in a process with Chambers Ireland and representatives from the network, together with subject matter specialist members to construct an Alternative 10 Point Plan for Micro, Small and Medium-sized Enterprises.

 

“If implemented, the policies suggested can help businesses and in turn stimulate job creation. For example, a reduced VAT rate on housing repair, maintenance and improvements (RMI) would not only incentivise start-ups and create employment in the construction sector, it also has knock on benefits for other sectors such as soft furnishings, white goods and electronics,”  Ms Kelly continued.

 

A 16.5% Capital Gains Tax for entrepreneurs would incentivise risk takers and support new business creation. Similarly a targeted rates reduction for businesses in town centres would support existing employers many of whom are in relatively low margin but high employment businesses. Recommendations include:

 

  1. Introduce a Reduced VAT Rate on Housing Repair, Maintenance and Improvements (RMI)
  2. Enable Start-ups to Offset Corporation Tax against Other Taxes Due
  3. Halve the level of Capital Gains Tax for Entrepreneurs to 16.5%
  4. Introduce a Targeted Rates Reduction for Businesses in Town Centres
  5. Introduce a Double Rent Deduction for Companies with Upward Only Rent Reviews
  6. Apply an ‘Ireland Rate of Return’ in Tendering Decisions for Public Sector Contracts
  7. Introduce an Additional Tax Incentive Policy to Encourage Private Sector Investment
  8. Promote Ireland as the Best Possible Location for Nearshoring
  9. Mandate all Government Research Funding Agencies to set aside 2.5% of their Budget for SMEs
  10.  Introduce Further Operational Initiatives to Promote Business Interests

 

To download a copy of the plan, click here.

 

-Ends-

 

For further information contact Edwina Gore, Limerick Chamber on 061-217607 / 087 6295323 or email pr@limerickchamber.ie

 

 

Limerick Chamber – an affiliated member of Chambers Ireland – Ireland’s largest business network creating the best environment for our members locally, regionally and nationally.

 

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