Dublin businesses to call for sharp cut to capital gains tax

Dublin businesses will call for a big cut in the rate of capital gains tax for indigenous firms due to surging inflation.

Dublin Chamber president Vincent Harrison, who is also managing director of Dublin Airport, will tell an audience of 1,200 business representatives at the group’s annual dinner in the Convention Centre tonight that the current rate of 33 per cent is “punitively high”.

“Government needs to reduce the rate of capital gains tax for indigenous firms to a simple 20 per cent rate,” he will say.

“With inflation at a 40-year high, no indexation and capital gains tax set at a punitively high rate, we think the time has come to make a low rate of capital gains tax an inherent element of enterprise policy going forward,” he will add.

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Rewarding risk

“We need to reward risk, encourage successful domestic businesses to double down and achieve global scale, and to remove the attraction of relocating to other jurisdictions as they reach that scale.”

Mr Harrison will also say State support for businesses grappling with energy bills is welcome, but a more long-term strategy is needed.

“While it is helpful to businesses for Government to offset some of the cost of their energy bills in the short run, Dublin Chamber strongly encourages Government to tackle the underlying problems by helping firms make the transition to a lower carbon and energy-efficient model so that energy costs remain manageable in the longer term,” he will say.

In addition, Mr Harrison will call for the appointment of a Cabinet-level minster to take direct responsibility for Dublin, alongside the “urgent need” to progress major public transport projects.

Power of mayor

“An elected executive figure for Dublin has been mooted for many, many years,” he will say. “However, the chamber has long argued that it is the role, not the title that is important. For too long this process has been debated and teased out.

“A directly elected Dublin mayor requires real devolution of powers and subsidiarity. If a mayor without robust powers is not on the cards, we propose that a Cabinet-level minister needs to be appointed to take responsibility for the development of Dublin.

“Dublin needs someone to ensure greater co-ordination and co-operation between local authorities, to champion Dublin at home and abroad, someone to develop enterprise and trade in the region, and someone who will be that strong voice for the capital at the highest levels of Government.”

Mr Harrison will also point to the rising population in Dublin, and say housing targets “may need to be revised upwards” as a result.

“But none of this can proceed without basic infrastructure, such as water,” he will add. “The Eastern and Midlands Region Water Supply Project cannot be delayed any further in order to meet even the medium-term needs of the region.”