Minister for Finance and Public Expenditure and Reform, Paschal Donohoe T.D. delivered the closing speech at the National Economic Dialogue yesterday, where he set out the framework for Budget 2019. Minister Donohoe outlined six themes which will inform Budgetary choices.

These are:

• How to continue to rebalance the economy towards changes that need to be made in the indigenous and domestic sector and how to respond to the very demanding agenda of decarbonisation and climate change.
• How the Social Insurance System can be used to continue to deliver tangible improvements to all citizens.
• How to have a tax base that is broad and stable.
• How to have a better approach to land, regarding planning, supply and organisation of land.
• How to continue to make gradual and sustained improvements to the take home pay and living standards of citizens.
• How to continue to deliver sustained and increased investment in public services.

The Minister stated “ I am committed to tax reform. I am committed to changing the tax code, where we can get ourselves to a place that, if you’re earning an average wage in our country, you’re not on the higher rate of income tax.”

In her remarks to the forum, the Institute’s Communications Director, Olivia Buckley, highlighted Ireland now has the third-highest CGT rate (33%) among OECD countries – it was fourth-highest last year. “This is an issue because CGT is a key determining factor for investment in businesses – it can help or hinder the process. It is unquestionably the tax that matters most to investors and influences their behaviour.” She also mentioned revised entrepreneur relief, which locks out the important ‘angel investors’, who not only invest money but experience and industry expertise, a vital factor when we consider the deficit of managerial capability in Irish business, as highlighted by the OECD.