A reduction in Capital Gains Tax (CGT) headline rate to 20% for all are among the measures suggested by the Small Firms Association in its Budget 2019 submission.

The industry group also wants an increase in the lifetime limit for CGT Entrepreneur Relief to €15m, as well as an increase the Earned Income Tax Credit to €1,650.

The SFA’s budget submission comprises a five-point plan. Additional proposed measures include ensuring that small businesses do not incur any extra costs, as well as initiatives to boost residential property construction.

Sven Spollen-Behrens (pictured), SFA director, said that Budget 2019 must focus on the small businesses in Ireland.

“In doing so, the government would reduce the risk on our economy from over-reliance on foreign direct investment, while seizing an important opportunity to future-proof our economic model,” he added.

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The SFA pointed out that, at 33%, Ireland has one of the highest rates of CGT among developed economies.

Spollen-Behrens argued that a reduction in CGT to 20% across the board would make investing in a business in Ireland more attractive.

“CGT represents only 1% of the government’s tax revenue, so there is very little to lose by reducing the rate, but the benefits could be significant. The SFA is also calling for CGT Entrepreneur Relief to be extended to compete with the UK scheme.”

• Download SFA's small business ideas for Budget 2019