Ibec, the lobby group for bug business, described Budget 2016 as “the right budget for the country, at the right time”.

The organisation said USC reductions will reduce the marginal tax rate below the psychologically important 50%, and said the reduction in capital gains tax and a new self-employed tax credit make it the best budget for entrepreneurs in a decade.

CEO Danny McCoy declared: "The budget is right for the economy at this time and signals a new phase of economic development. The crisis is behind us and we are planning ahead. The government has taken on board the concerns of business, reduced the marginal tax rate and encouraged private investment."

On tax, McCoy said: "The USC cut will reduce the marginal tax rate below 50%. It is still very high, but we are moving in the right direction. No worker, no matter what they earn, should pay over half their marginal income in tax. A reduced rate will make it more attractive to take a job, accept a promotion and do overtime.

“It will help attract Irish emigrants back and make it easier for companies to attract and retain mobile talent. The USC reduction will increase January pay packets by about 2% and will support the positive economic momentum. Despite tax cuts, take-home pay will still be significantly below pre-crisis levels for many earners.”

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On measures to promote entrepreneurship, he said: "The reduction to capital gains tax will make it more attractive to invest in new businesses and expand existing operations. This, along with a new tax credit for the self-employed, will encourage more people to start their own businesses and create jobs,” he claimed.

On Ireland's international tax offering, he said: "The Knowledge Development Box sends out a clear signal that Ireland will continue to compete aggressively for mobile investment. The Knowledge Development Box will support Ireland's position as a transparent, stable and investment friendly business location. It paves the way for a new phase of inward investment."

On business costs, Mr McCoy said: "It's a mixed bag when it comes to business costs. It's great to see a significant reduction in commercial motor tax, which will bring us more into line with the UK. More should have been done to off-set the cost of the minimum wage increase for small business by reducing PRSI."