The Family Business Network is looking for a cut in CGT to 20% and a complete replacement of the commercial rates system in its pre-Budget submission, along with the establishment of a  new state agency for indigenous and family businesses.

It wants a new scheme to replace the existing rating system, as the latter  “unfairly discriminates” against local family businesses in favour of large online retailers.

And on CGT, the cut from 33% to 20% would “rebalance” the economy, by  increasing investment in indigenous companies — and these contribute 80% of Ireland’s output —  along with a temporary reduction in the Capital Acquisitions Tax (CAT) rate to 20% for a period of two years.

FBN also wants an agency for this sector akin to IDA Ireland that would facilitate the scaling up of the domestic economy at a time when the FDI model faces increasing challenges.

The new state agency would be focused solely on scaling up the potential of family-owned and operated firms so they can become the main job creators and drivers of economic recovery.  

In Association with

Executive director John McGrane said: “Now is the time to seize the opportunity to rebalance Ireland's economy by supporting indigenous and family businesses which can be found in every town and village in Ireland.

“Establishing a new state agency for indigenous firms would help reinvigorate the domestic economy and reduce Ireland’s dependence on multinationals. Through the creation of this state agency together with a more supportive policy environment, Irish family-owned businesses can do what they do best — innovate, invest and grow internationally.  

“Taxation is another key policy lever to unlock the job creation potential of family firms. There is an ever-growing need to cut Capital Gains Tax in order to unlock greater levels of investment within the domestic economy and deliver a jobs-led recovery.

“Through the measures we're recommending today, family businesses can be the driving force of Ireland's recovery. But it is vital that recovery is not obstructed by a failure to address issues like planning reform or by tax increases that could hinder the success of local family firms who employ close to one million people in Ireland.”

The network is also calling on policymakers to prioritise the creation of a new Planning and Environment Court to speed up decision-making in the planning process, accompanied by the introduction of an electronic planning system. The full submission is available here.