Opportunity for Lasting Reform Must Be Taken

Chambers Ireland has today (07/09/09) welcomed the publication of the Report of the Commission on Taxation and calls on Government to make speedy decisions on how to use these recommendations and over what time-frame.

According to Ian Talbot, Chief Executive, Chambers Ireland, “There has been much speculation in recent weeks about what would be contained in the report and how it would be implemented. It is vital that now the information is in the public domain Government act quickly and decisively to establish what they are going to implement and in what timeframe. Failure to do so will result in continued freezing up of transaction activity as people slow down spending until they understand the individual financial impacts.”

“Local authorities are under severe pressure to meet their budgetary needs following a collapse in development contribution revenues by an average of 63%. We cannot continue to avoid dealing with this shortfall. Therefore we fully support the implementation of local taxes based on property and water usage to provide a broader sustainable revenue base for their vital work in all our local communities. The latter will also facilitate the conservation of water supplies – something which is impossible at the moment as there is no way to measure what is consumed,” he continued.

“We have to recognise that the tax system is currently biased towards transaction activity, exacerbating boom/bust cycles, and has contributed to our current fiscal crisis. This report gives us a great opportunity to commence the establishment of a sustainable, equitable and broad based tax system for the future, enabling us to manage through economic downturns better,” Talbot concluded.