Cork firms urge income tax cuts

More than two-thirds of Cork businesses are calling for income tax to be cut in October’s budget to sustain growth in the region.

More than half of businesses in the county believe the Government’s budgetary adjustment should be less than the €2bn planned, while many are also calling for strategies to increase consumer spending.

The figures are contained in the second quarterly economic trends survey complied by Cork Chamber of Commerce.

Chamber president Gillian Keating urged the Government to use the budget as an opportunity to sustain the economic recovery that has taken hold of late.

“The opportunity for growth now presented must not be wasted. It is imperative that Government seize this long sought after opportunity through the introduction of financial provisions in Budget 2015 that support and sustain continued growth and the most facilitative business environment possible.,” Ms Keating said.

The survey, which incorporates responses from sole traders, micro-enterprises, SMEs, and multinationals, also highlighted the continued high level of confidence among Cork enterprises, with 88% of business-owners expressing confidence in the future of their business.

Almost 60% of businesses increased profits in the second quarter with a similar number reporting higher turnover and expecting the gains to be maintained or bettered in the next quarter.

“Reported and projected increases in turnover, net profit, and employment numbers are undoubtedly amongst the key drivers for the continued high levels of business confidence,” Ms Keating said.

“Almost six out of ten businesses (59%) reported an increase in turnover over [the second quarter] and 56% reported increases in net profits.”

The survey also showed that four out of ten businesses took on new staff in the second quarter and the same number anticipates further job increases over the next quarter.