I can confirm that I have received representations regarding the decision to abolish the PRSI contribution ceiling for employers, as announced in my Budget Statement. However, I do not propose to alter that decision.
As I indicated at the time of the announcement, the PRSI changes should be viewed in the context of the significant improvement in the business climate. Although not all businesses have benefited from the significant corporation tax reductions achieved in recent years, many have done so. In addition, the substantial improvement 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 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 by the various employer interests.