Louth's Fitzpatrick calls for cut in VAT and PRSI rates for struggling SMEs by Easter
Deputy Peter Fitzpatrick and the Regional Group of TDs are calling for the reduction of the current VAT rate
Louth TD Peter Fitzpatrick, along with the Regional Group of TDs are calling for the reduction of the current VAT rate of 13.5% to 9% for food businesses in the hospitality sector before Easter.
“Adjusting the 8.8% employer’s PRSI threshold to a ceiling wage of €495.30 per week, will be a lifeline for many businesses”, said Deputy Fitzpatrick in a statement today.
Alongside the Regional Group of TDs, Deputy Fitzpatrick made these demands as part of its Private Members Motion to be debated on Thursday next, to support Small and Medium Enterprises, which the Louth TD says, are struggling to keep their doors open due to recent Government charges and in recognition of the “vital role which these businesses play in our local economy and communities”.
According to Deputy Fitzpatrick, “Our motion calls on the Government to immediately establish a taskforce representative of small businesses with Government departments and agencies personally chaired by the cabinet minister to review the application of all Government controlled costs and to reduce Government charges and costs of doing business. By providing quarterly updates to the Joint Oireachtas Committee on Enterprise, this will ensure that this will be a taskforce for action, not talk”.
In his statement, the Independent TD said that “SMEs are a critical pillar of the Irish economy. The people who create and lead SMEs throughout the country are incredibly diverse, from family-owned businesses, rural-owner managers, traditional to high growth and technology start-ups.
“There are more than 1.2 million people employed by SMEs in Ireland representing 99.8% of active enterprise. Most of these enterprises are micro-sized enterprises employing less than 10 people.
“Government policy decisions have increased the cost of doing business significantly, particularly in the SME sector. Many SMEs, including rural and regional businesses, are facing significant cost challenges. “These increasing input costs due to increases in energy, inflation, insurance, cost of labour, national minimum wage increases, higher PRSI, plans for pension auto-enrolment, extended sick-pay entitlements on top of VAT increases, along with many other input factors are making it very difficult for small businesses to continue trading.”
Deputy Fitzpatrick and the Regional Group members added that the are calling on Government to address these business issues now before additional closures occur in the hospitality, retail, travel, food, drink, tourism, and entertainment sectors.