• Brokers Ireland expressed “deep disappointment” that the Budget measures did not include relinking the rate of Exit Tax on life insurance savings to the DIRT tax rate. 

Leaving the Exit Tax at 41% while DIRT will fall to 33% by 2020 means that “the state is penalising savers who plan for the longer term and attempt to make a better return on their savings,” the organisation said.

Financial services director Rachel McGovern said: “Legislation should not steer people towards short-term savings solely because of preferential tax treatment. We believe there is a compelling logic for relinking Exit and DIRT. It is deeply disappointing the minister has chosen not to do so in today’s Budget.”

• The Hairdressing Council of Ireland is calling on Salon owners and industry professionals tp protest outside Leinster House at 1.30pm on Tuesday October 23. Council president Bridget Haran said the VAT increase of 4.5% is coupled with a rise in the National Minimum Wage from €9.55 to €9.80 plus a rise in the rate of employer PRSI. “ These increases are too much for the industry to bear,” said Haran. “The majority of salon owners are struggling to keep their doors open and retain staff.

"This VAT increase will migrate clients into the already very active black market. We all know someone working from home on the QT. The public never think of these people as harming anyone but the reality is they are in direct competition with legitimate businesses. It is time to stamp out black market activity nationally.

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Haran added: “The industry is going through a massive skills shortage. A hairdressing apprenticeship will roll out in late 2019. However, employers will be required to pay the apprentice both on and off the job. This is very different to historic apprenticeships such as electrical and plumbing where the apprentice is paid a training rate by the state while they are college."

• The Irish ProShare Association said that while increasing the limit on share options held by an employee to 100% of salary was welcome measure, changing the three-year limit to a lifetime would “cause confusion because it creates an obstacle rather than removes one”.

The association believes that fundamental changes are need if the Key Employee Engagement Programme (KEEP) is to work, given that not even one Irish business has opted into it since inception. 

Chief executive Gill Brennan commented: “Nothing has been done to address the other KEEP obstacles. There was no mention from the minister of guidance or safe harbour around valuing a company, no mention of the fintech exclusions which prevents many companies from adopting KEEP, and no mention of the €3m market value limit of a company, which is a significant obstacle for high-growth startups and SMEs.”

• The Small Firms Association welcomed the increase in the Earned Income Tax Credit but expressed disappointment with the missed opportunity to relieve business costs on small firms and maintain competitiveness as Brexit approaches.

Director Sven Spollen-Behrens (pictured)said: “The Earned Income Tax Credit for the self-employed has come closer to parity with the PAYE tax credit, with an increase of €200 to €1,350. However, the blatant discrimination that was due to end in Budget 2018 has still not come to fruition and the SFA will continue to campaign for the gap between EITC and the PAYE credit (€1,650) to close fully.

“It is regrettable that the government has again ignored the SFA’s call to reduce Capital Gains Tax to 20% across the board, to make investing in a business in Ireland more attractive. At 33%, Ireland has one of the highest rates of CGT amongst developed economies.”

• The Institute of Professional Auctioneers & Valuers welcomed the bringing forward of 100% mortgage interest relief for private landlords to January 2019 in respect of loans used to purchase, improve or repair properties.

Chief executive Pat Davitt said high taxes are one of the primary reasons why private landlords are leaving the market. “Private landlords are treated substantially less favourably by the state than commercial landlords. The Budget announcement, which we have long sought from the government, is welcome in this regard, although more is needed.” said Davitt.

• Marian Finnegan, chief economist with Sherry Fitzgerald gave a cautious welcome to the Budget measures. “Despite the severity of the housing crisis, Budget 2019 was relatively benign from a property perspective and, disappointingly, it failed to address key issues relating to the residential rental market," she said.

“The increase in the rate of mortgage interest relief from 80% to 100% for private investors will only increase the net yield of a private investor by less than 50 basis points. Although positive, it is not significant enough to prevent the outflow of private investors from the market.

“Our research shows a continued outflow of investors from the buy to let market. Reflecting the trends of recent years, 35% of vendors were selling their investment properties, while investors entering the market represented only 18% of purchasers. This trend continues to deepen the supply side crisis in the lettings market, and it is disappointing that this has not been addressed in the Budget 2019 measures.”