Business groups have given a mixed reaction to the various measures announced by Finance Minister Brian Lenihan in yesterday's Budget.
ISME, which represents small and medium enterprises, says the Government is adopting the wrong approach by trying to tax its way out of the recession.
It says the 1% income levy will act as a disincentive to employment.
IBEC, meanwhile, says the minister's plan to maintain high levels of capital investment is encouraging, but more urgent action could have been taken on public-sector reform.
The Construction Industry Federation, meanwhile, has welcomed the cut in stamp duty on commercial properties from 9% to 6%, saying it should help stimulate growth in the building sector.