Roll over relief on Capital Gains Tax positive for entrepreneurs and small business
Concerns bank levy will be passed onto business and consumers
Continued pension funds money grab very negative
“The announcements supporting entrepreneurs and business start-ups will play a key role in contributing to growth. Concerns that continuing to levy pension funds is just a further robbing of the schemes which are already under serious pressure.”AJ Noonan, Chairman, Small Firms Association .
Reacting to the Budget 2014 announcement today, the Small Firms Association said there were positives and negatives for business. The increase in the lower rate of PRSI and other taxes to the economy will impact detrimentally on the domestic economy.
SFA Chairman AJ Noonan said that the announcements supporting entrepreneurs and business start-ups “will play a key role in contributing to growth”, stating that the roll over relief in capital gains tax for reinvestment; improvements in Employment & Investment Incentive Scheme (EIIS); increasing the cash receipts VAT Threshold and improvements in the R&D tax credits all recognises the potential of small enterprises.
The SFA welcomed the retention of the 9% VAT rate for hospitality and related items as it has proven to be a very positive initiative and will continue to support this fragile domestic focused sector and jobs within it. However, SFA noted that it will be well paid by increases in excise duties.
AJ Noonan added that the excise duty increases were disappointing, “we already are among the highest excise rates in Europe and these increases will only impact on jobs, squeeze hard pressed consumers and potentially encourage cross board trade.”
SFA highlighted that the home improvement scheme will encourage spending in the domestic economy; promote activity in the small business construction sector and address challenges of the hidden economy.
AJ Noonan expressed concerns that continuing to levy pension funds is “just a further money grab of the schemes which are already under serious pressure.” He also raised concerns over the proposed bank levy, “Small businesses are already crippled with bank charges, and the real fear is that this cost will be passed back to businesses and result in further increased charges and lack of credit.”
The Small Firms Association (SFA) is the national organisation exclusively representing the needs of small enterprises (i.e. those employing less than 50 employees) in Ireland. The organisation works with government and policy makers nationally and internationally, to ensure that the economic environment is conducive to small business establishment and development.
For further comment, please contact AJ Noonan, SFA Chairman at Tel: 086-2592610.