ISME proposes 10% tax rate for start-ups

Small business association ISME has called for a simple 10 per cent tax rate for start up enterprises in the first five years in operation.

In its pre-budget submission ISME also said that benchmarking should be scrapped and replaced with fixed departmental budgets and privatisation of certain public sector jobs

It said increasing taxation rates and borrowing to fund public sector wastage and inefficiencies "is the equivalent of economic folly."

ISME has submitted its proposals to the Minister for Finance, Mr McCreevy.

It said Mr McCreevy should adopt a prudent fiscal policy "that will ensure control is regained of public expenditure, especially the public sector pay element."

It also proposes

• a commitment to fast tracking the completion of the National Development Plan

• policies that will improve competitiveness

• the promotion of a "think small first" policy in order to stimulate start-up businesses and entrepreneurial activity and development.