Cork Chamber demands budget action on providing stability following effect of Covid-19 pandemic

CORK Chamber is calling for investment in education, skills and apprenticeships to help the economy to recover from the effects of the Covid-19 pandemic.

In a pre-budget submission, the organisation is also seeking an extension of the reduced VAR rate for businesses in the hospitality and tourism industry until the end of 2023. A clear pathway also needs to be established for the Employment Wage Subsidy Scheme, the Business Resumption Support Scheme and rates waivers for businesses most impacted by the pandemic.

The submission also seeks a reduction of the Capital Gains Tax rate of 33% to 25% for non-passive investment; an increase in the lifetime limit of €1 million in qualifying capital gains under Entrepreneur Relief; the expansion and simplification of the eligibility criteria for the R&D tax credit rate to medium sized enterprises, and the retention of certainty and stability in the Irish corporate tax regime by engaging in the established OECD process, as well as the development of an Action Plan for Trade.

The organisation says however that there also needs to be a focus on infrastructure, housing and education to bring the country into stability.

Speaking at the launch of Cork Chamber’s Budget submission 2022 Budget Committee Chair Seamus Downey said: “This budget must provide clarity to business on how supports will evolve for those most affected but it must also look to the future of supports, to growing and expanding our indigenous base and creating stability for FDI. R&D, capital gains tax and entrepreneur relief must be improved with haste.” 

Chamber President Paula Cogan said: “Infrastructural commitments such as CMATS (Cork Metropolitan Area Transport Strategy) must be secured in this budget, alongside a more forceful move towards clean renewable energy via floating offshore and hydrogen. Alongside this the commitments in Housing for All must be supported by budgetary measures to ensure no stone is left unturned in the delivery of vibrant new communities in our urban areas.”