The Irish Tax Institute has said the Government’s decision to base the forthcoming budget on the assumption of a no deal Brexit is prudent and agrees that resources must be concentrated on supporting areas of our economy most at risk.
Speaking at the Institute’s AGM, incoming President, Frank Mitchell said: “High on the list of those vulnerable to Britain leaving without a deal, are our SMEs, many of whom export to the UK. These are the businesses and the people on whom we rely to make our economy resilient at a time of growing uncertainty and risk.”
He said all the available economic advice was that the way to build resilience was to increase productivity by fostering innovation and strengthening management practices in our homegrown companies.
“In our Pre-Budget Submission, we have called for an innovation incentive that is tailored for the SME sector so that they can compete for new markets in a post Brexit world,” said Mr Mitchell. “We have used taxation to build a high performing multinational sector. Now is the time to apply that approach to our indigenous sector. Through the tax system, we can empower our entrepreneurs to fulfil their potential as a major force for growth and job creation in a broadly-based, sustainable economy.”
Referring to the Government’s Climate Change Action Plan, Mr Mitchell said taxation could be an effective tool in achieving its objectives. “Whilst tackling climate change will require action on several fronts, it is clear that taxation can be effective in bringing about behavioural change.”
He said he wanted the Institute to play its part in meeting the biggest challenge of our time. “Although we are a single body with just over five thousand members, we have the ability to lead the debate on environmental taxes and I believe we have a responsibility to do so,” concluded Mr Mitchell.
You can read President Mitchell’s full speech to the AGM here