Budget 2012 – moving in the right direction?

Morgan McKinley 09.12.2011
Budget 2012
Budget 2012 has proven to be the most anticipated, leaked and discussed budget in years. We all know at this stage the usual features – cuts to social welfare, health, education, rise in VAT, CGT but if we dig a little deeper  we can begin to see past the sensational newspaper headlines and  possibly view this budget as a positive sign that we are finally moving from rescue to rebuilding? In my opinion, yes we can!
I believe the tax measures implemented in this budget have helped to make it one  that is positive for business, for growth  as well as exports   Some of the measures include:
•No change to the 12.5% corporation tax rate
•Measures which ain to ensure continued success for the IFSC
•Positive changes to R&D
•Further corporate tax exemptions for small businesses
•Improvements in tax regime to attract key people talent to Ireland under the “Special Assignee Relief Programme”
•Tax breaks for companies to encourage exports to BRICS (Brazil, Russia, India, China, South Africa)
•Moves to stabilising the property market
On an individual basis, the government held firm to their commitment not to raise income taxes, although increases to consumption/indirect taxes may have reduced some of the impact of this.  Check out the useful KPMG calculator tool which quickly assesses your bottom line.  http://www.kpmg.ie/budget2012/calculator/index.htm
The overall objective of this budget was to encourage growth and recovery in Ireland and with the above measures hopefully this objective will be achieved. However I think it is wise to have a certain amount of cautious optimism we are inevitably edging closer to the limitations of  taxing and the government will eventually have to conjure new  ways of reducing spend in future budgets.
Finally as a recruiter, as always, it is encouraging to see the implementation of measures to help attract key talent to Ireland in a bid to create more jobs and facilitate the development and expansion of business here.
Now where is that calculBudget 2012 has proven to be the most anticipated, leaked and discussed budget in years. We all know at this stage the usual features – cuts to social welfare, health, education, rise in VAT, CGT but if we dig a little deeper  we can begin to see past the sensational newspaper headlines and  possibly view this budget as a positive sign that we are finally moving from rescue to rebuilding? In my opinion, yes we can!

The 2012 budget has proven to be the most anticipated, leaked and discussed budget in years. We're all aware of the usual cuts, social welfare, health, education, VAT increases, CGT and so on. If we look past the sensational newspaper headlines, is this budget as a step from rescue to rebuilding?In my opinion, yes we can! I believe the tax measures implemented within this budget will help grow our economy, boost exports and promote business activity.

Some of these measures include:

  • No change to the 12.5% corporate tax rate
  • Measures which aim to ensure continued success for the IFSC
  • Positive changes to R&D
  • Further corporate tax exemptions for small businesses
  • Improvements in tax regime to attract key people talent to Ireland under the “Special Assignee Relief Programme”
  • Tax breaks for companies to encourage exports to BRICS (Brazil, Russia, India, China, South Africa)
  • Moves to stabilising the property market

 

On an individual basis, the government held their commitment in relation to income taxes and chose not to introduce any further increases. However consumption / indirect taxes were not as fortunate. To see how the changes will impact your finances, check out the useful KPMG calculator tool which quickly assesses your bottom line.

The overall objective of this budget was to encourage growth and recovery in Ireland and with the above measures hopefully this objective will be achieved. However I think it is wise to have a certain amount of cautious optimism, we are inevitably edging closer to the limitations of  taxing and the government will have to conjure new ways of reducing spend in future budgets.

Finally as a recruiter,  it is encouraging to see the implementation of measures to attract key talent to Ireland, in a bid to create more jobs and facilitate the development and expansion of business here. Now where is that calculator?!

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