Employment levy will cost jobs, says exporters' group
The income levy contained in Minister Brian Lenihan's Budget will result in increased unemployment, the Irish Exporters Association has claimed today.
The IEA pointed out that the need for increased taxation was primarily coming from what it claimed was an inefficient use of public funds in running public services.
Liam Shanahan, IEA Council president, stated: “The levy on employment, while understandable in the current economic climate, is regrettable as it will increase costs for businesses and will ultimately lead to job losses.”
“An urgent and radical review of all government services must now be undertaken to ensure the income levy is removed at the earliest possible date.”
However, Shanahan complimented the minister on positive aspects of Budget, particularly capital expenditure and improvement on tax credits, in regard to R&D.
The IEA said that it has for some time encouraged the Government to improve the taxation climate for start up companies and welcome the measures in this regard.
