Exporters want wider tax bands and road upgrades

THE Irish Exporters Association want an extra €1 billion a year to be spent on roads and a widening of the income tax bands as part of the upcoming budget.

In its submission, the IEA said Ireland’s infrastructure is like that of a third world country and needs urgent investment. It said road building has slowed and needs the cash injection on top of what has been committed under the National Development Plan.

The upgrade is needed to both catch up and meet the export led demand for road freight transport which is set to grow by 140% to 2013.

Michael Counahan, president of the association, said the most pressing issue for his members is the cost of labour, which is now non-competitive for export companies.

“Irish wages have been rising faster than in other EU countries for a number of years. Minister Brian Cowen must improve the cost base for exporters in this Budget to prevent total erosion of the trading margin.”

He added that Mr Cowen has the best financial position any finance Minister has ever had on taking up office.

“He must put it to good use to secure the future of the export led economy.”

The IEA also wants a reduction of exporters PRSI by 2% and a widening of the income tax bands to reverse the rise in the number of persons paying the top 42% rate.

Meanwhile, the Irish Craft Brewers Network (ICBN) wants changes to the excise duties that has the potential to generate €8m-€12m for the Exchequer.

It wants a staggered excise rate, similar to the successful systems implemented in Britain, Germany and the United States.