Small Firms Association welcomes measures to support small business finance
The Small Firms Association (SFA) has given a broad welcome to Budget 2015. SFA Chairman, AJ Noonan, commented “This Budget will support small businesses in improving access to debt and equity finance, and in boosting job creation by making it more attractive to work and increasing disposable income. However, the continuation of tax discrimination against self-employed workers must stop.”
SFA Chairman, AJ Noonan further stated: “The improvements announced to the Employment and Investment Incentive Scheme (EIIS) should assist small businesses by making it more attractive for private investors to invest in small indigenous business and get a tax write off. Banks now demand 30% equity investment before they grant approvals for small business loans, so this measure is critical. This should be followed up with real reform on CGT for entrepreneurs in next year’s budget. We look forward to engaging with Government on the promised development of the Integrated Export Finance Strategy, which is a major gap currently in our financing toolkit.”
On income tax reform, SFA Chairman, AJ Noonan, welcomed the reforms announced to the top-rate, marginal tax band and USC changes, stating that these measures “will help small businesses in continuing on their path to growth by strengthening the incentive to work and giving our workers extra disposable income, which should also boost consumer demand, and allow us to create more jobs, in a virtuous cycle.” He also strongly welcomed the abolition of the “unjust pensions levy”.
However, SFA Chairman, AJ Noonan, condemned the decision to extend the 3% additional USC charge paid at the top rate by self-employed which the Minister had committed to lapsing at the end of this year. “It is critical that there is at least equity in treatment between employees and Proprietary Directors / self-employed people in the tax system and that risk takers are not discriminated against. In a still high unemployment economy, we should be doing everything possible to incentivise self-employment and small business start-ups.”
In conclusion, SFA Chairman, AJ Noonan commented: “The government in Budget 2015 have introduced some good measures to support small businesses, including the maintenance of the 9% tourism & hospitality VAT rate, not increasing excise duties, improvements to the R&D tax credit, FED, home renovation fund, Seed-Capital Scheme and the corporation tax relief for start-ups. However, in Budget 2016, we challenge them to be more radical in promoting growth.”
Article Published: 16/10/2014