SFA: Budget 2019 a missed opportunity for small firms

The Small Firms Association (SFA) has voiced its disappointment over the Government’s “missed opportunity” to ease the burden of business costs on small firms and help maintain competitiveness amid an uncertain business climate.

The SFA, which is the trusted partner for over 8,500 small firms in Ireland, regretted the Government’s decision to ignore its appeal for a reduction in Capital Gains Tax (CGT) to 20% across the board – a move designed to make investing in Irish businesses more appealing.

Sven Spollen-Behrens, director, SFA, said: “At 33%, Ireland has one of the highest rates of CGT amongst developed economies.

“It is disappointing that the Government has decided against introducing measures which would stimulate economic activity and add to our competitiveness.”

Mr Spollen-Behrens also claimed that the decisions made in Budget 2019 will ramp up business costs unnecessarily for small employers.

The Government’s decisions to “raise the National Training Fund levy and to increase the special 9% VAT rate” will be key factors in “driving business costs upwards”.

In a bid to add to enhance the competitiveness of Ireland’s small businesses, the SFA is also “calling for CGT Entrepreneur Relief to be extended to compete with the UK scheme”.

The Association did welcome the increase to the Earned Income Tax Credit (EITC). According to Spollen-Behrens, the announcement of an increase of €200 to €1,350 will help the self-employed “come closer to parity with the PAYE Tax Credit”.

Although the SFA welcomed the Government’s enhanced investment in housing, childcare and the amendments to the Key Employment Engagement Programme, it called on the Government to engage fully with the Association to develop a brand-new ‘Small Business Strategy that “will enable small business to thrive”.

“As the economy continues to grow, it’s important that we seize the opportunity to support homegrown enterprises and stand behind those individuals who take the risk to start their own business,” added Spollen-Behrens.

Date published 23 Oct 2018 | Last updated 23 Oct 2018