Call for innovative tax measures to save jobs

MEASURES such as tax relief for investors lending to small firms, halving capital gains tax (CGT) to 12.5%, and tax-friendly employee share options could help sustain 620,000 endangered indigenous jobs, says the Irish Taxation Institute (ITI).

The Institute yesterday warned the Government that innovative tax measures were needed to avoid further job losses in Irish small and medium-sized enterprises (SMEs). The ITI is proposing that its tax initiatives cover a minimum five-year period, with a threshold to ensure benefits are limited to SMEs.

ITI chief executive, Mark Redmond, explains: “The big issue is cash flow. The Government has already offered a PRSI exemption to companies taking people off the dole queues. We’re hopeful these measures may also gain approval, as they’re aimed at saving jobs for small businesses. We are talking about a tax incentive allowing investors to give loans to small businesses. If the loan is interest-bearing, it should match the DIRT-bearing loan rate of 25% rather than the marginal rate of 41%.