Government Goes for Easy Options Rather Than Real Targeted Cost Cutting: VAT Brings Short Term Uncertainty to Domestic Economy
Chambers Ireland has today (06/12/11) said that we must see quantifiable savings from Croke Park as a matter of urgency in 2012 now that the Government has avoided making hard decisions in today’s Budget. Speaking this afternoon, Ian Talbot Chief Executive Chambers Ireland said, “The 2pc increase in VAT is very disappointing. However, this won’t apply until Jan 2012 and gives a window for consumers to spend over the next four weeks.” “We welcome the rise in the exemption limit for the Universal Social Charge from €4k to €10k as a positive move which will incentivise work but we would like to have seen further initiatives to make this a jobs budget. The revenues raised from increases in a number of charges must be reinvested strategically to ensure growth and stability. For example, it is vital that the revenue raised from the car tax increases should be ring fenced for Local Authorities rather than the vague ‘Exchequer deficit purposes’.” Talbot concluded.