26% of Irish businesses would like to see a 'digital tax credit' and assistance in going online

When asked what key measures the Government should take to promote stability in the economy, 41% said customers must be given incentives to spend more

by Mairead Cleary, Sunday, 11th October, 2020

Over a quarter of Irish businesses would like to see the introduction of a "digital tax credit" in the upcoming budget.

According to a survey carried out by the Association of Compliance Officers of Ireland, a digital tax credit would be welcomed by many organisations that have had to greatly increase their tech presence and capacity due to Covid-19.

Of the 300 members who were surveyed, 19% said a longer-term wage support scheme and further training of staff within organisations would make a huge difference in helping businesses navigate their way through the challenges presented by the pandemic.

Commenting on the results of the survey, CEO of ACOI, Michael Kavanagh, said the new working environment has presented significant challenges for companies.

"Funding for training and upskilling will be important factors in considering how to support staff to work effectively within the new operational environment for business."

"Some people’s roles may have changed radically. A whole new level of compliance is also required which means more money and resources for staff training."

11% of respondents said the process around Start Up Relief for Entrepreneurs (SURE) should be simplified and promoted to a greater extent.

When asked what key measures the Government should take to promote stability in the economy, 41% said customers must be given incentives to spend more.

27% said more grants are needed for struggling businesses, 23% said a cut to personal taxes would help boost the financial sector and just 4% said business taxes should be cut.

Mr Kavanagh said that the Staycation tax credit will be a "damp squib" in its first month but hopes that it can make a meaningful difference when Level 3 restrictions are reduced.

“Assisting businesses through the provision of increased financial support measures, whether directly through credit facilities or indirectly through tax measures for businesses and/or consumers, will be vital to help get businesses through the winter."

As much of this year's Christmas shopping is likely to take place online, the CEO said investment and assistance is needed for businesses to be ready for the Christmas rush.