Draft Programme for Government aims to secure Ireland’s future

Last week, the draft Programme for Government was released setting out what can be expected once the programme is officially agreed later this week. Most readers’ attention will be drawn to the measures aimed at growing our economy and delivering on infrastructure.

The document is ambitious in its scope with a commitment to create 300,000 extra jobs by 2030 as well as build over 300,000 homes by 2030 in line with the revised Housing Targets. There is also a commitment to rigorously implement the SME test when designing each new piece of legislation and regulation to determine the impact on SMEs.

On taxation, the Government’s priorities are as follows:

• Broad Tax Base Maintenance: Ensure a wide-ranging tax base to mitigate the need for counter-cyclical fiscal policies during economic downturns and to address future budgetary challenges, particularly those related to an aging population.
• Progressive Taxation Adjustments: If economic conditions remain robust, implement progressive tax changes. This includes indexing credits and bands to prevent an increase in the real burden of income tax.
• International Tax Reform Engagement: Actively participate in the OECD's international tax reform initiatives. Our corporate tax policy must reflect the globalized nature of trade and industry. A tax system that supports innovation and entrepreneurship is crucial to maintaining Ireland's attractiveness for sustaining and growing existing businesses, as well as for starting and scaling new ventures.
• Energy Cost Containment: In response to rising energy costs for households and businesses, introduce tax measures to help manage these expenses, including adjustments to VAT.

The document contains a commitment to delivering a clear and credible macroeconomic and fiscal framework which will meet future needs. As part of this a new Government Action Plan for Competitiveness and Productivity will be published within 12 months focusing on “industrial policy, reducing the cost and regulatory burden on business, investing in infrastructure, digital regulation and reform, energy reform, international trade and research and development, and innovation”.