Ireland’s call: What do business sectors want from Budget 2027?
Public Expenditure Minister Jack Chambers and Finance Minister and Tánaiste Simon Harris. The Budget will be revealed at 1pm on Tuesday. Picture: Niall Carson/PA Wire
Tánaiste and finance minister Simon Harris and public expenditure minister Jack Chambers will unveil Budget 2027 at 1pm on Tuesday. Over the past few months, representatives of business interests in Ireland have been giving their submissions to Government on what their sectors need.
So what are representatives of Ireland’s business community calling for in Budget 2027? Here’s a breakdown of some of their proposals:
Small Firms Association represents businesses employing up to 50 employees. It has called for the Government to reject any increase in the National Minimum Wage. It is also calling on the Government to introduce a temporary PRSI rebate to alleviate employment costs. It wants increases in the Small Benefit Exemption – which allows employers to give non-cash rewards totaling a maximum of €1,500 per employee tax-free each year - to €2,000 per annum. It wants a reduction in Capital Gains Tax (CGT) from 33% to 20%.
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ISME, which represents and supports small and medium-sized enterprises across Ireland, proposes a PRSI rate of 2% to all earnings up to €352pw, and a 6% PRSI rate on marginal earnings above €848pw.
It has called for the Commission for Regulation of Utilities (CRU) to write a report specifying the components of Ireland’s consumer and energy costs. It urged the Government to reject the Judicial Council call for an increase in insurance personal injuries awards.
ISME wants a reintroduction of a Section 23-type tax incentive to energise the provision of private rental accommodation, especially in rural areas.
ISME says public sector pay should also be benchmarked against that in peer EU countries and wants a greater proportion of Corporation Tax diverted into the “Rainy Day Fund” or into non-current expenditure.
The Vintners Federation of Ireland is seeking a targeted tax credit on draught products sold in pubs. It proposes the tax credit valued at €20 per 50-litre keg of beer, with pubs eligible to claim up to €20,000 per year.
The Society of Chartered Surveyors Ireland SCSI is calling for a time-limited Capital Gains Tax (CGT) relief to incentivise the sale or activation of vacant buildings. It wants tax relief on rental income from refurbished vacant properties for a defined period. It also calls for a reduction in the 7.5% stamp duty rate on vacant commercial properties and the application of a 9% VAT rate on the sale of refurbished residential units.
The Construction Industry Federation is calling for reform of the tax treatment of construction workers to attract and retain talent in a critical sector for supporting Ireland’s competitiveness. It wants reform of the Residential Zoned Land Tax, exempting active, constrained developments or phased developments. It seeks an extension on reduced VAT rate to all duplex apartments, and a permanent extension of the Help to Buy Scheme and extension of the thresholds.
The Irish Congress of Trade Unions wants a €1 increase in the National Minimum Wage from January 2027. It calls for reductions in the cost of using essential public services, and progress on delivering the promised €200 a month childcare.
ICTU wants an end to the payment cap freeze on pay-related jobseeker’s benefit and a a second tier of child benefit for low-income families.
Chambers Ireland wants action on energy, labour, regulatory and operating costs, and delivering measurable reform through the Cost of Business Advisory Forum. It calls for better use of the National Training Fund and targeted support for SME innovation and AI adoption.
The American Chamber of Commerce Ireland (AmCham) called for standalone Digitalisation and Decarbonisation Tax Credits, reduced personal tax burdens on employees, and a 100% subcontracting cap of internal R&D spend to allow qualification for tax credits.
The Credit Union Development Association (CUDA) which represents members of the credit union sector wants the Government to give credit unions a central role in delivering the new Personal Investment Accounts and fairer access to State-backed lending schemes. CUDA is also seeking €500,000 in funding for a Credit Union Cyber Resilience Programme; It wants reform of the Credit Union Stabilisation Fund, the safety net for undercapitalised credit unions, to allow “appropriately governed earlier intervention” while retaining strong prudential safeguards.
IRHA wants the Government to subsidise biofuels that can be produced within the EU to ease dependence on imported fuels. IRHA says thatwould mean significantly lower carbon emissions, stronger energy security, and an alternative source of income for EU farmers who can produce the crops needed for EU produced biofuels.
The Hardware Assocation of Ireland (HAI), representing the hardware sector, called for investors operating through limited companies to be included in the Above the Shop grant, alongside a three-year Capital Gains Tax exemption for qualifying properties and the removal of the requirement for ground floors to remain in commercial use. It is also seeking a two-year stamp duty waiver on empty homes and an additional €20,000 grant for each additional residential unit created within a vacant property.
Friends of the Earth has called for a windfall tax on data centres, with the revenue to fund energy upgrades for low-income households. It says there must be a moratorium on large data-centre developments, and for centres with demand above 10MW to pay 100% of their transmission costs upfront.
The Irish Farmers’ Association wants the Government to provide 200% matching funding (€30.76m) for the €15.38m of EU fertiliser supports. It wants a permanent RZLT exemption for active farmers, and increased inheritance thresholds.
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