IBEC slams tax increases

Turlough O’Sullivan, Director General of IBEC, has said that the Minister for Finance should have made more cuts in spending rather than increasing taxes in today's Budget.

Mr O'Sullivan said: "Business recognises the need to take corrective measures to stabilise our public finances. Nevertheless, in the Minister’s efforts to achieve this, IBEC would have preferred a greater emphasis on cutting current expenditure rather than on increasing taxation.

"It is important that this Budget helps position Ireland to trade successfully, especially after the global economic recovery comes."

IBEC said they were disappointed that the Government has not more fully addressed the Budget deficit and has not been more determined in its efforts to reduce the public service pay bill.

The business body also criticised the move to bring forward the payment dates for corporation tax, saying "this could impair the cash flow of many companies in the very difficult current circumstances".