The Small Firms Association (SFA) today launched its Budget 2020 submission at which it called on Government to nurture entrepreneurship and give small businesses the opportunity to enhance their productivity and increase resilience.
The Association has warned that at 33%, Ireland has one of the highest rates of capital gains tax (CGT) amongst developed economies. The SFA is calling for a reduction in CGT to 20% across the board, to make investing in a business in Ireland more attractive.
CGT represents only 1% of the Government’s tax revenue, so the SFA say 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. In it's submission, the SFA say supporting small businesses would mitigate Ireland’s over-reliance on FDI.
To meet the Government’s target of increasing domestic productivity by 1% per year, the Association says greater investment in education and upskilling for small business is needed.
At a time when positivity among small businesses is at its lowest seen by the SFA, the Association warns that it is vital that Budget 2020 boosts confidence among Ireland's small business community.
Speaking today, SFA Director, Sven Spollen-Behrens said, "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."