Small Firms Association seeks PRSI rebate in upcoming budget  

The association is also seeking a reform of commercial rates, saying that reducing the burden of commercial rates would make it easier for businesses

Small Firms Association director David Broderick said the Government must put the small business community 'at the heart of this budget'.

The Small Firms Association has called on the Government to introduce a PRSI rebate in the forthcoming budget, in order to support businesses as the transition is made to a living wage.

In its pre-budget submission, the association said the rising cost of doing business continues to be the key issue faced by smaller companies, particularly due to high energy prices, fluctuation in commodity prices, and supply chain challenges.

The association said the additional wage-related pressures — including increases to the minimum wage and the forthcoming pension auto-enrolment requirements — are adding to the costs of many businesses.

In the submission, it said the PRSI rebate would “mitigate against labour-related costs”.

“The PRSI rebate would be based on a rebate for each worker below an agreed earnings threshold. This could be operated through Revenue’s PAYE Modernisation system.”

The association’s director, David Broderick, said if Taoiseach Simon Harris is “serious” about continuing support for Irish businesses, the Government must place the small business community “at the heart of this budget”.

“The key ask from the [association] is the introduction of a PRSI rebate to assist firms with the transition towards the living wage rates, which are due to come into force,” he said.

Alongside the PRSI rebate, the association is seeking cuts to capital gains tax (from 33% to 20%), a review of the fixed penalties of €4,000 for non-filing/incorrect return, and the introduction of a National Training Voucher Scheme — which would allow firms to claim back expenses for training costs during a year.

It is also seeking a reform of commercial rates, saying that reducing the burden of commercial rates would make it easier for businesses.

The Small Firms Association is part of the business group Ibec. Last week, the Government published the summer economic statement, which outlined an €8.3bn package for the budget due on October 1.

Of this, €6.9bn has been earmarked for increases in public expenditure and €1.4bn will go towards a tax package.