The Small Firms Association has called on the government to nurture entrepreneurship in Budget 2020 and introduce measures to increase resilience among small firms.
The organisation’s submission for Budget 2020 is seeking a commitment from government to what it calls a “whole-of-government national Small Business Strategy”, with a roadmap towards significant policy goals such as increased productivity, export diversification and more.
Director Sven Spollen-Behrens (pictured) said: “Budget 2020 must place a clear focus on Ireland’s small business owners, by providing certainty on costs and maintaining competitiveness.
“To meet the government’s target of increasing domestic productivity by 1% per year, greater investment in education and upskilling for small business is needed. At a time when positivity among small businesses is at its lowest, it is vital that Budget 2020 boosts confidence among our small business community.”
The SFA wants a reduction in Capital Gains Tax from 33% to 20%, contending that as CGT makes up just one per cent of tax revenue, the little to be lost would be more than made up by the significant benefits to business which could follow.
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Spollen-Behrens added: “Brexit poses one of the biggest challenges faced by small businesses in years. Supporting small businesses would mitigate some of Ireland’s current vulnerabilities and create a true entrepreneurial culture with benefits for entrepreneurs, employees and communities.”
The SFA lists its priorities for Budget 2020 as:
- Protect competitiveness by ensuring that Budget 2020 provides certainty for small business
- Reduce the headline rate of CGT to 20%
- Increase the lifetime limit for CGT Entrepreneur Relief to €15m
- Remove the €3m cap on the value of business assets allowable for retirement relief for those aged 66 or more
- Increase the Earned Income Tax Credit to €1,650 to equal the PAYE tax credit
- Use funding from increases in the National Training Fund levy for the Skillnet Programme.
