THE Construction Industry Federation has welcomed the reduction in corporation tax on the first £50,000 of profits but has also said the changes in PRSI, while welcome, do not go far enough.
The reduction in corporation tax will be welcomed by the many small and family-owned business in the construction industry, according to the director-general of the federation, Mr Liam Kelleher, who also welcomed the increase in the employee PRSI exemption and the £80 incentive for recruitment of long-term unemployed persons.
He said the moves announced by the Minister towards multi-annual budgeting "will assist significantly in the efficiency of Government capital spending".
The chairman of the Irish Home Builders Association, Mr Michael Coleman, said he was pleased Mr Quinn had retained the first-time home buyers grant and also welcomed the continuation of the current rate of VAT on residential construction.
"We are disappointed, however, that the Minister has not taken the opportunity to increase the stamp duty exemption on new houses from 125 square metres to 150 square metres," he said.
The Institute of Professional Auctioneers and Valuers, however, said the Budget had failed home owners. "The retention of the unjust rates of stamp duty, along with the inequitable residential property tax will continue to place significant restrictions on home ownership in this country." The institute said Mr Quinn missed the opportunity to introduce exemptions on stamp duty `for first-time buyers of second-hand houses, something the institute has consistently called for. The Budget should have included an exception from stamp duty for first-time buyers on houses up to £50,000 in value, the institute added.
The executive secretary of the institute, Mr Liam O'Donnell, said the residential property tax was "totally inequitable and only serves to unfairly penalise those whose homes are in the Dublin area". He added: "Mortgage interest relief, too, has been slowly and steadily eroded."
Mr Quinn introduced a new tax, relief for mining companies to offset costs incurred in closing down a mine and returning it to a greenfield site. He said this would cost £1 million on average in a full year.
The measure was recommended by the National Mineral Policies review group. Ensuring measures were taken to return sites to a greenfield state was also an issue of concern to objectors to the Arcon development at Galmoy, Co Kilkenny.
In another move, Mr Quinn said company representatives, particularly in urban areas, would benefit from a new 20 per cent relief on benefit-in-kind tax on company cars.
The new measure will allow representatives who spend more than 70 per cent of their time travelling on business but incur low mileage, to claim tax relief. Under the current provisions, high mileage tapering relief was available where business mileage exceeds more than 5,000 miles per year.
The concession will cost £1.7 million in a full year, according to the Minister.