Chambers Ireland, the voice of business throughout Ireland, argues the Exchequer Returns emphasise the strong economic position we are in, despite two years of the pandemic.
Strong tax returns, particularly in income tax, demonstrate that Government policy to support businesses and jobs has been correct. This suggests that we will be in an ideal position to deliver on National Development and Climate Action Plans for 2030.
Speaking earlier today, following the release of the 2021 Exchequer Returns, Chambers Ireland Chief Executive, Ian Talbot, said, “with net Tax receipts almost €10 Billion higher than the 2019 figures the underlying strength of our economy highlights the effectiveness of the Government’s job support strategy over the covid crisis.”
“Despite the severe impact on businesses across the cultural, tourism, entertainment and hospitality sectors the impressive economic activity which underlies 2021’s tax receipts signal that Ireland is in an envious position to rebound post-pandemic, relative to our international peers.”
“While a GNI* deficit of 4% is not ideal, given the scale of business supports, the increase in health spending, the trauma and the hardship which so many individuals have suffered over the last two years, none of us would have imagined that we would have maintained such momentum.”
“There will be no ‘return to normal’ though, the 2020s are likely to be a decade with many economic shocks yet to come. The revenue implications involved in the shift away from combustion engines will be significant, and even if the 2021 OECD Corporation Tax changes are less likely to hurt our economy, we shouldn’t be basing our long-run projections around maintaining €15 billion in receipts.”
“When Covid related expenditures hopefully begin to decline in 2022 we should expect the budget to quickly shift into surplus, but we will have to remain prudent and refocus spending on infrastructure as quickly as possible, because considerable volatility in tax receipts is to be expected over the decade ahead.”
Source: Chambers Ireland