Guarded welcome for Budget from SFA

The Small Firms Association (SFA) has given a guarded welcome to today's Budget.

The organisation welcomed the removal of the employees on the minimum wage from the tax net, the increase in tax credits and the widening of the tax bands.

SFA Director Pat Delaney warned however that the Budget “is only viable if the economy achieves economic growth above 5.1% of GDP”.

The SFA praised the lack of rate increases on excise duties and VAT, but expressed disappointment over the PAYE treatment of self-employed and proprietary directors of small companies.

The increase in the PAYE allowance means that the gap between PAYE workers and those who are in self-employment has now increased to €2,500.

This, according to the SFA, is unfair treatment of those who create jobs in the economy.

“It is our expectation that wage moderation should follow this budget, as people's real standard of living should rise” said Delaney.

The SFA also criticised the ongoing development of a system of stealth taxation, with local authorities free to impose charges and increase commercial rates at will.

“The business community will not tolerate increases in environmental, waste management or water charges by Local Authorities above the rate of inflation in the coming year” said Delaney.

The SFA welcomed the Minister's strong commitment to retain the 12.5% rate of corporation tax, and the Government's low capital taxation policy.

It also welcomed the Minister's capital spending plans.

“Capital spending in the region of 5% of GNP should help to bridge the infrastructure gap, particularly in the transport sector”, said Delaney.