Chamber Outlines Its Hopes for Budget ‘15

Waterford Chamber President Dr Derek O’Byrne.

Waterford Chamber President Dr Derek O’Byrne.

Waterford Chamber has said that Budget 2015 provides an opportunity to ensure that economic growth and job creation are balanced across the economy and the country.

Waterford Chamber President, Dr Derek O’Byrne said: “While some regions and sectors of the economy have seen a developing recovery, there are many areas still facing tough economic conditions. Government must ensure that measures introduced in Budget 2015 support local economic development, encourage job creation and promote balanced growth.

“It is vital that no new taxes are introduced in Budget 2015.Certain taxes, such as marginal tax rates and Capital Gains Tax, should be reduced to incentivise investment, lessen the cost of employment and encourage job creation.”

“Anything that acts as an impediment to employment must be removed. The current system of social welfare must continue to be reformed to help people break their dependency on welfare and support them in moving to part time or full time employment.”

Chambers Ireland has made a number of recommendations to stimulate growth and support job creation including:

* Abolish the 80 per cent windfall tax on rezoned land with any gains falling under Capital Gains Tax rules. This will facilitate much needed residential development in areas where there is pent up demand and stimulate the construction sector.

* Reduce marginal tax rates to below 50 per cent to reward employment, support enterprise, and attract high value FDI jobs.

* Reduce Capital Gains Tax to 20 per cent for active investments and improve the Employment and Investment Incentive and the Seed Capital Scheme to encourage entrepreneurs across the country to invest and create jobs.

* Reinstate the lower rate of employers’ PRSI for Class A staff to encourage businesses to take on new employees.

* Maintain and give certainty on the nine per cent VAT rate in the hospitality sector which supports the national hospitality and tourism industries.

“Government’s focus must be on the overall goal of getting the country back to work. Impediments to work must be removed, the cost of employment reduced and measures to stimulate growth introduced if we are to create employment and once again become a vibrant economy,” he concluded.

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