The Irish Tax Institute has today (31 October 2024) published its proposed ‘Tax Strategy for the Next Government’.

This wide-ranging document sets out tax policies for the consideration of the next Government that the Institute believes will foster an innovative and productive domestic business sector while ensuring Ireland remains well placed to attract the next wave of FDI.

Among the recommendations are:

• Reduce the marginal personal tax rate to 50%, reform PRSI, and broaden the tax base so that all taxpayers contribute according to their means.
• Promote productivity and innovation among SMEs with more accessible and less restrictive tax measures.
• Continue to attract FDI with clear and simple corporate tax rules.
• Set out a clear and stable policy to increase housing supply in a sustainable way.
• Explore opportunities to expand existing environmental taxes and align the tax system with our 2030 carbon emissions targets.
• Ensure the tax system continues to promote pension saving and eliminate inconsistencies and inequities in the tax treatment of different retirement arrangements.

Speaking today, Anne Gunnell, Director of Tax Policy and Representations at the Irish Tax Institute, said: “The Irish economy is in good shape at present with all the key indicators going in the right direction. However, as a small open economy Ireland is highly exposed to the rise in protectionism and worsening geo-political tensions.

“The main domestic vulnerabilities are Ireland’s well-documented reliance on a small number of multinational companies for tax receipts and employment; the increasing cost of doing business; the housing crisis; and a creaking national infrastructure that is constraining economic growth. The Institute believes that tax policy can play a critical role in addressing all these challenges.

“In the document, which we have shared with all the political parties, the Institute sets out our proposals for a comprehensive tax strategy which the Institute believes will strengthen the competitiveness of our economy by fostering a dynamic and productive SME sector, simplifying the business tax code, and investing in housing and public infrastructure.

“We also propose tax changes that will help Ireland meet its climate targets and mitigate the fiscal and economic impacts of population ageing.

“We believe the recommendations in our document provide a sound tax framework for the next government to achieve these critical objectives.”

Read the full list of Irish Tax Institute recommendations.