Irish Retailers Call For Personal Income Tax Cuts

by Jason Gorringe, Tax-News.com, London

08 May 2014

Industry body Retail Ireland has called on the Government to cut the country's personal tax burden to boost spending and stimulate the domestic economy.

Retail Ireland said that while it expects to see a meaningful recovery in the retail sector this year, high personal income taxes continue to impact consumer consumption. It has recommended that the Government raise the entry level to the higher marginal income tax rate. In turn, the marginal rate should be reduced to below 50 percent.

At 52 percent, Ireland has one of the highest marginal tax rates among Organisation for Economic Cooperation and Development (OECD) countries. The OECD average is just 36 percent.

Retail Ireland Director Stephen Lynam said: "As the largest private sector employer, retail is crucial to Ireland's economic revival. Not only does it generate employment in its own right, it is also hugely important for our agriculture sector, with retailers spending EUR5bn (USD6.95bn) annually on Irish food and drink products. A thriving retail sector will generate billions in tax revenue for the Exchequer and thousands of jobs right across the country."

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