This article is from page 16 of the 2013-10-08 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 16 JPG
THE tourism and hospitality sector in Clare is anxiously waiting to see if next week’s budget will retain the 9 per cent VAT rate that has boosted their business in recent times.
Ennis-based tax expert Fergal Cahill says the matter is particularly important in Clare.
“Given the nature of the local economy and the high profile of the hospitality and tourism sectors, this is a touchstone issue for the county. The foregone tax revenue is being costed at € 350 million yet the industry can ill-afford to raise prices. There is considerable pressure on the minister in both directions, leading to speculation about a compromise move to a rate between 9 per cent and 13.5 per cent.”
Other issues that will be closely watched locally will be a possible harmonisation in pension tax relief to a single rate somewhere between 30 per cent and 35 per cent, replacing the current reliefs at marginal tax rates of 20 per cent and 41 per cent.
An extension of capital gains tax exemption past the end of 2013 is also likely to feature given that with- out it NAMA will be hard pressed to dispose of its enormous property portfolio.
Cahill Taxation Services is hosting its annual budget breakfast briefing next Wednesday in the Old Ground Hotel, Ennis. Over 100 business owners and civic leaders attended last year’s event to hear Fergal Cahill and his team interpret and analyse all aspects of Budget 2013.