Michael Ring
Question:110 Mr. Ring asked the Minister for Finance if he will reverse the decision to remove the ceiling on employers' PRSI in view of the impact it is having on employers and employment potential. [7259/01]
Written Answers. - Tax Code.
As I said recently in the House in reply to a question on the same topic, I do not propose to alter the position regarding the abolition of the employer PRSI ceiling, as announced in my budget 2001 speech.
I reiterate my view that these changes must be seen in the context of significant improvements in the overall business climate. While not all businesses will have benefited from the significant corporation tax reductions achieved in recent years, very many have done so. In addition, the substantial improvement that I announced in the budget in the capital allowances for plant and machinery will benefit a wide range of enterprises. Moreover, our employer PRSI system continues to compare very favourably with the EU norm. Overall, therefore, the environment for business continues to be very positive.
I have already signalled my intention to press ahead with the reform and simplification of the PRSI and levies system which has become particularly complex over the years. In progressing this agenda in my next budget, I will take into consideration the concerns expressed.