Accountants: Increase in VAT threshold for small business 'paltry'
The Institute of Certified Public Accountants (CPA) has criticised the low increase in the VAT threshold for small business in the Budget.
CPA President Brendan Allen said that the small increase was a missed opportunity to reduce the burden of regulation on small business.
"The Government could have been stronger in its defence of indigenous small business when framing its Budget and the increase in the VAT threshold, particularly for services, is paltry," said CPA President Mr Brendan Allen.
"We welcome measures such as the increase in the taxation liability threshold for smaller businesses and start-ups, but we believe that Mr Cowen could have gone much further in easing the regulatory burden on small businesses."
"Support to indigenous industry leads to growth, job creation and opening up international markets for Irish goods and services. The low increase in the VAT threshold, particularly services, was a missed opportunity to reduce the burden of regulation on small business and is a worrying sign that the current taxation regime is less than supportive to indigenous business."
The CPA has however welcomed the Government's announcement of stamp duty reforms as a bold but positive move to reenergize the economy.
"The service sector is now growing at its slowest pace in more than four years, and has obviously been impacted by the slide in building activity", said Mr Allen.
"This much anticipated reduction in stamp duty will play a vital role in restoring overall economic confidence."
