Joe Flaherty
Question:29. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment how Budget 2024 will help theSME sector; and if he will make a statement on the matter. [51233/23]
View answerThursday, 23 November 2023
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Written answers
It is important to acknowledge the challenges facing Irish enterprise over the last number of years, and I am aware of the concerns of SMEs, as they deal with the rising cost of doing business. The Government has provided significant support to business throughout the period of rising costs and has been proactive in limiting the fallout from higher rates of inflation in input costs and prices. Although inflation in Ireland is still elevated at 5.1 per cent in October, it is generally declining and is down from 9.4 per cent in October 2022.
Unfortunately, the Government cannot insulate businesses from rising costs indefinitely. However, Budget 2024 backed businesses, in particular SMEs, in the face of ongoing challenges. There were a number of measures introduced that will support businesses in every city, region, town and village in Ireland.
Budget 2024 contained a number of measures which will support businesses facing increased costs of doing business. Among the measures included, are:
• The 9% VAT reduction for gas and electricity is being extended for an additional 12 months, until 31st October 2024;
• The temporary excise rate reductions applying to auto diesel, petrol and marked gas oil which were due to expire on 31st October 2023 are being extended until 31st March 2024;
• An increase in the limit on the amount that an investor can claim relief on under the Employment and Investment Incentive Scheme, to €500,000;
• An increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods;
• Reduced Capital Gains Tax rate of 16% for Angel Investors in innovative SMEs, on gains of up to €3 million;
• An increase in the R&D tax credit from 25% to 30%, as well as increasing the first-year upfront payment from €25,000 to €50,000, which will be of particular benefit to SMEs;
• The commencement of a range of amendments to the Key Employee Engagement Programme for the attraction and retention of staff;
• Introduction of the Increased Cost of Business Scheme, which will provide a once-off grant to benefit a significant number of small and medium businesses at a cost of €250 million.
My Department, and its officials are fully committed to enabling the SME sector in Ireland to thrive, and the measures in Budget 2024 reflect this commitment.