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Stamp duty cut will stimulate property market, says Dublin Chamber

Categories: Property, Taxation, Budget
Stamp duty cut will stimulate property market, says Dublin Chamber

Stamp duty cut will stimulate property market, says Dublin Chamber

Pictured: Gina Quin

The reduction in commercial stamp duty, together with other measures to promote stability and demand, will provide a much needed stimulus to the moribund commercial property market in Dublin, according to the Dublin Chamber.

“Ireland’s rate of stamp duty has been well above that of the UK,” said Gina Quin, chief executive of Dublin Chamber. “Exchequer figures show a consistent decline in commercial stamp duty revenue, so this is the right time to take corrective action. Commercial stamp duty will account for less than €100m of tax revenue in 2011 and we expect that, with a lower rate, this revenue stream will increase in 2012. ”

“The Minister for Justice’s decision to not proceed with the legislation to abolish upward only rent review clauses in existing business leases is a disappointment for a significant number of businesses. However, the period of uncertainty for all businesses is now over, allowing property values to stabilise.”

Quin said Dublin Chamber looks forward to working closely with Minister Noonan on the bill to support the international financial services industry in Ireland.

“Ireland is one of the most attractive countries globally for foreign direct investment (FDI). We need to keep it that way. Therefore, the package of measures to support business, including the improvements to the R&D tax credit, the corporate tax exemption for start-ups and the Assignee Relief Programme are welcome. The Assignee Relief Programme in particular, will allow businesses to attract the essential skills and talent that the economy will need to recover.”

Dublin Chamber said it was disappointed by the 2pc hike in the higher rate of VAT which will place added pressure on the retail sector. “Retailers will be relying on the decision to leave income tax rates and bands untouched, the lowering of the universal social charge for the lower paid, and the increase in DIRT tax on savings will put a halt to declining retail sales,” said Quin. “We acknowledge, however, that we now have certainty that there will be no further VAT increases in the lifetime of this Government.”

She said the Government’s continued protection of the 12.5pc corporation tax rate is to be commended. “Any change to the corporate taxation would have severely diminished Ireland's ability to attract foreign direct investment and dissuaded entrepreneurs from establishing new businesses in Ireland.

“The decision to abolish from 1st January all employer PRSI relief for pension contributions is out of sync with a Budget focused on supporting the creation of jobs in the short term, the medium term and the long term,” she concluded. “This decision will impact negatively on employment creation, by putting upward pressure on the cost of labour.”

Categories: Property, Taxation, Budget