PwC has today released its latest Pre-Budget Poll which was undertaken in the last 2 weeks having approximately 50 leading Irish business decision makers participating.
It finds that reducing the personal tax burden is the key priority for the 2018 Budget with a sizeable majority favouring the widening of the 20% income tax band. One in two are of the view that a potential significant US corporate tax rate cut would not impact their businesses.
A third of respondents (33%) would most like the 2018 Budget to achieve a reduction in the high personal tax burden. Other priorities are investing in roads, health services and faster broadband (22%), dealing with the housing crisis (20%) and boosting Ireland's cost competitiveness (9%).
Nearly three-quarters of respondents (73%) say Minister Donohoe should widen the 20% income tax band. Over half (56%) support the merging of USC and PRSI.
According to the survey, Ireland’s potential loss of competitiveness is the greatest business concern arising from Brexit (36%). Other concerns are pressure on margins due to Sterling/Euro exchange rate fluctuations (20%) and the continued freedom of movement of people (16%).
Speaking today, Tax Partner at PwC, Pat Mahon said, "Enhancing our attractiveness as a location for investment will be critical in a post-Brexit environment. The opportunity to do this is available when considering the proposed merger of the USC and PRSI. The expected widening of the 20% tax band for 2018 will not significantly impact on our competitiveness in attracting key talent to Ireland. However, a signal that a phased merger of the USC/PRSI will address our headline 52% rate is ultimately what is needed when competing on the international stage for more jobs to come to Ireland."
Source: www.businessworld.ie
