Deloitte backs €3.1bn target

Tax specialist Deloitte has hinted at marginal increases in both capital gains and capital acquisition tax levels in next month’s budget, but has added it would be prudent of the Government to stick with a full €3.1bn adjustment for 2014.

In its pre-budget submission it said that given the cumulative adjustment needed over the next two years, “the prudent approach would be to make the full adjustment in 2014”.

However, with “no huge potential to raise more revenue from Vat” and the income tax well already “dry”, Deloitte partner, Padraig Cronin said that the bright spots may come in the form of tax relief initiatives for entrepreneurs and some pensions changes.