Taxation group's proposals questioned

THE “TAX neutrality” of the Commission on Taxation’s recommendations were called into question yesterday in a survey of business people conducted by PricewaterhouseCoopers (PwC).

Nine in 10 business executives surveyed by the accountancy firm said they did not believe that the tax-raising measures recommended by the commission would be balanced by tax reductions to give an overall tax neutral result.

A “significant majority” of those surveyed – 84 per cent – said they believed Ireland would become a less competitive place to do business due to higher personal tax.

“The results highlight the importance of implementing the commission’s recommendations in a manner which lowers, rather than increases, taxes on labour. While this is consistent with the views expressed in the commission’s report, there is real concern that this will not happen,” said PwC partner Colm Kelly.

Just over half – 55 per cent – of the 300 business people surveyed said they felt the overall impact of the commission’s report on business would be negative.