Irelands Financed Act Analysis 2010 / 2011

This report draws attention to the importance of the Finance Act 2010 to the Irish economy but also highlights concerns with the Finance Act 2010. We have gone further and highlighted the new measures set out in the Finance Bill 2011.

The Finance Act 2010

The annual Finance Act has a major effect on the economy. Its purpose is directing economic activity in the economy. The minister argued that the Finance Bill 2010 ensured that all sectors played their part in the critical task of stabilising the public finances. The Finance Bill 2010 was important for setting the path for fiscal correction. Unemployment had peaked to around 13% in 2009 and the minister for finance argued that we had to continue to encourage employment growth through targeted measures that would build on our existing strengths.

As a result the Government remained committed to providing a pro-enterprise environment and maintained a relatively low tax burden on business in the Bill. This has encouraged the enhancement of Irelands competitiveness. If Ireland does not maintain and increase its competitiveness, the country will be unable to return to the strategy of export-led growth. The finance bill 2010 was important because it extends the existing scheme of tax exemption on the income and gains of new start-up companies over the first three years of operation. A major incentive for new businesses. It has been extended in the Finance Bill 2011.

http://www.finance.gov.ie/viewdoc.asp?DocID=6203

Another measure in the Finance Bill 2010 was the removal of the Life Insurance Levy, from pension products in order to encourage investment in pensions. Another key change was the Car Scrappage Scheme which was extremely important for the Industry who had lost 10,0000 jobs in 2009.

http://www.finfacts.ie/irishfinancenews/article_1018982.shtml

The Society of the Irish Motor Industry (SIMI) said more than 10,470 new cars had been bought under the scheme in the first seven months of 2010...