DUBLIN: Ireland should slash personal tax rates in a bid to create jobs and take advantage of Brexit, according to a new report by accountancy and consulting firm EY. The report, published on Monday, questioned 160 entrepreneurs in Ireland and found that nearly three-quarters said the overall cost of doing business in Ireland, coupled with the high rate of capital gains tax (CGT), is deterring investment and job creation.
Around 72% of the entrepreneurs questioned cited the punitive personal tax rate as a significant obstacle to growing a business. Anyone earning over €32,800 (£27,822, €34,931) a year in Ireland is subject to 40% income tax, compared to the UK where the same tax band only kicks in at £43,001 (€50,624) a year. In Germany, individuals are only taxed 42% income tax when they are earning more than €54,058 a year. Ireland’s personal tax rates have been frequently criticised by chief executives as being a major deterrent to luring staff and executives to Ireland. Kevin McLoughlin, partner at EY, said: “We still have a long way to go to improve Ireland’s personal tax competitiveness and compete to retain the exceptional entrepreneurial talent that is being created here.”
