Monday, 20 September 2021
The Small Firms Association (SFA) today launched its Budget 2022 submission whereby it called on Government to continue to back Ireland’s small businesses and entrepreneurs so they can be allowed to bounce back and rebuild as we enter this post-emergency phase of Covid-19 in Ireland.
Small business priorities for Budget 2022:
1. Drive a competitive business environment for small firms and entrepreneurs
2. Sustain investment and entrepreneurship through the tax system
Sven Spollen-Behrens, SFA Director, said: “As the Irish economy comes out of the emergency phase of the pandemic, it is vital that the Government use Budget 2022 to focus on providing certainty on costs and support the retention of staff, to help small businesses survive and mitigate any long-term impacts from Covid-19 restrictions.
“Given the all-consuming nature of Covid-19, Ireland’s economy can no longer accommodate the long-standing barriers facing business-owners. Budget 2022 must take decisive action to stop the discrimination in the tax system against the self-employed and Proprietary Directors. To assist the recovery and make Ireland a better country for entrepreneurship capital gains tax should be reduced from the current penal rate of 33% to 20% and increase the lifetime limit for CGT Entrepreneur Relief to €15 million.”
“Addressing barriers and disincentives for entrepreneurs and business is equally important, Ireland is becoming a place where it is more and more difficult to do business due to continuing rising costs, be it wage costs, administrative costs or utilities. The Competitiveness and Productivity Council has consistently signalled that Ireland continues to slip in its competitiveness ratings compared to other EU countries, Budget 2022 is a prime moment to reverse this downward trend.
“This Budget must take steps to meet the challenges and opportunities of the digital economy and boost employability, by investing in reskilling, upskilling and job activation schemes to get people back to work. It must also safeguard the delivery of decent, affordable broadband to small firms across the country.”
Mr Spollen-Behrens concluded: “Small businesses can be major contributors to growth, job creation and regional economic recovery, if the right choices are made in Budget 2022.”