IEA Pre-Budget Submission 2015
Irish Exporters Association Key Priorities and Recommendations
Export led growth will be the main driver of faster growth in real GDP which will in turn determine our success in reducing unemployment and elimination Ireland’s fiscal deficit and reducing the national debt to GDP ratio.
Prospects for Irish exports in 2014 and beyond have improved largely as a result of the diminishing impact of the patent cliff effect and the continued success of Irish food and agricultural related exports. However, the export sector is struggling on a number of fronts. Budget 2015 must support the development of a stronger export drive by adopting measures that address a number of urgent issues and implement specific policy measures identified by Irish exporters as critical to their efforts to expand their businesses.
To stimulate the development of the Irish export sector, which will be vital to the sustainable recover in the Irish economy in 2014 and beyond, the Irish Exporters Association recommends that the Government in framing Budget 2015 should:
- Increase the entry point to the income tax rate from €32,800 by 10%.
- Reduce the marginal tax rate in income tax by 1%.
- Reduce the rate of employer PRSI on lower paid workers to the pre- 2014 levels of 4.25%.
- Reduce the top rate of USC by 1%.
- Extend Foreign Earnings Deduction Scheme beyond 2014. Expand number of qualifying countries and increase maximum deduction to gross deduction of € 50,000 p.a.
- Expand R&D benefits and decrease the period required to obtain R&D tax benefits.
- Introduce 100% tax relief in the year of investment in Investment Incentive Scheme and reset investment period should at 5 years.
- Maintain current 12.5% corporate tax rate.
- Allow carry forward unused withholding tax credits to future periods and make available for off-set against future tax liabilities.
- Give corporation tax benefits to companies generating IP in Ireland.
- Expand schemes such as the Internet and innovation voucher programs for SMS’s.
- Guarantee first time export grant to be spend on export related supports.
- Ensure that more long-term loan capital is made available to mid-sized companies.
Click on the link for a copy of the IEA Pre-Budget submission for 2015.