Irish Tax Institute on Budget 2022

Today, Minister for Finance, Paschal Donohoe T.D., and Minister for Public Expenditure and Reform, Michael McGrath T.D., presented a Budget package of €4.7 billion including €500 million of tax measures. In his Budget 2022 Statement, Minister Donohoe said, “In framing this Budget, we have been conscious of the cost of living pressures that are currently confronting citizens and businesses.” 
Commenting on the extension of the Employment Wage Subsidy Scheme (EWSS) to 30 April 2022 in a graduated form, the Minister noted “These revised arrangements for EWSS strike a balance between helping those businesses which continue to need support, while recalibrating the scheme in light of the wider economic recovery.”
The Minister for Finance also noted that “Supporting entrepreneurs and the wider business community will be central to our broader national recovery. They are indeed the backbone of our domestic economy, supporting tens of thousands of jobs across the country.”   In welcoming the Government’s decision to continue the EWSS until the end of April next year, Institute President, Karen Frawley, said, “We all know that the recovery has been uneven across the economy and there are businesses that are struggling to return to pre-pandemic levels of trading. The decision to continue the EWSS and the reduced rate of Employers’ PRSI will be of enormous benefit to these businesses.”  Commenting on the Minister’s admission in his Budget speech that the Employment Investment Incentive (EII) scheme has yet to reach its full potential, the Institute President said “We welcome Minister Donohoe’s undertaking to open the scheme to a wider range of investment funds and to ease the restrictions around the redemption window and the 30% expenditure rule. But we await the details in the Finance Bill to see if these changes will make this important scheme more attractive to investors and more user friendly for our high potential and early-stage enterprises.” The President also noted the changes to the income tax bands and credits announced by the Minister as a welcome start. “But if we are to remain an attractive location for investment, a more comprehensive review of our personal tax system will be required. We look forward to engaging with the Commission on Taxation and Welfare on this matter,” said Ms. Frawley.

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