Saturday 1 October 2016

Fianna Fail 'will introduce a €1,650 PAYE tax credit for the self-employed if voted into Government'

Published 21/04/2015 | 15:44

Fianna Fail finance spokesman Michael McGrath
Fianna Fail finance spokesman Michael McGrath

FIANNA Fail will introduce a €1,650 PAYE tax credit for the self-employed if voted into Government.

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The party will also reduce capital gains tax to 15pc for small business owners and introduce a voluntary social insurance scheme which would see entrepreneurs receive social welfare payments if they become unemployed.

Fianna Fail will also ensure small business owners have easier access to credit from banks and other lenders.

The party announced the measures aimed at stimulating the small business sector ahead of a private members motion it intends to bring before the Dail.

Finance spokesman Michael McGrath said the tax system should treat people in an “equitable manner”.

“Self-employed people lose under the current regime because, while they receive personal tax credit of €1,650, they cannot claim the PAYE tax credit, also worth €1,650 per annum. This has a particularly stark impact for lower income levels,” Mr McGrath said.

He said the tax credit would cost €450m per year when fully introduced.  Mr McGrath said it would be introduced in a phased basis over three years with the self-employed entitled to a €500 tax credit in the first year.

Social welfare spokesman Willie O’Dea proposed a voluntary 4pc PRSI contribution for the self-employed which would entitle them to social welfare payments if they become sick or unemployed.

Mr O'Dea said only two other countries in Europe  - Bulgaria and Greece -  did not have social welfare payments for self-employed workers who encountered difficulties.

Fianna Fail small business spokesman John McGuiness said the jobs crisis cannot be solved by solely concentrating on foreign direct investment in the multinational sector.

“Despite our reputation as an exporting nation nearly 90pc of all Irish exports come from multinational sector. It will take time to turn this around but we have to start with supporting indigenous industry at every opportunity,” Mr McGuinness said.

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