New car prices could rise by up to €10,000 if taxes increase in budget
Prices of popular new cars could rise by up to €10,000 if recommendations from the Tax Strategy Group are implemented in next month’s budget. According to figures from the Volkswagen Group, which has a 28.6 per cent share of the new car market through its brands, prices for its best-selling Tiguan crossover with a 2-litre diesel engine could rise by €6,335 if the tax changes are implemented. Even the 1.5-litre petrol manual transmission version would rise by €3,439, while the seven-seat people carrier Sharan, with a 2-litre diesel engine and automatic transmission, would go up by €10,061. At Skoda, prices for the brand’s popular Karoq small crossover with a 1-litre petrol engine would rise by €2,864, while variants of the larger Skoda Kodiaq diesel crossover will rise by as much as €5,969. For Audi, significant price rises include €2,094 for an A4 diesel and €3,947 on a similarly powered Q3 crossover. Rival car brand Hyundai, with a 9.5 per cent share of the new car market, estimates some of its models may rise by €2,000. Its managing director, Stephen Gleeson, described the Tax Strategy Group’s proposals as “beyond belief” in the current Covid-19 economic crisis. Article Source: click here.
Income tax will not be raised in next budget, Donohoe says
Minister for Finance Paschal Donohoe has said there will be no hike in income tax in the forthcoming budget. Speaking in Dublin this afternoon, Mr Donohoe said “the final piece of the jigsaw” is the September tax returns and he will be in a better position to make an assessment of the country’s finances then. “But for Budget 2021 in particular, this budget coming up, I’m not planning to go to Government with plans to increase income tax.” Mr Donohoe said tax receipts have held up well over the pandemic. “The tax receipts across June, July and August particularly in relation to income tax did show that the combination of having a very broad number of jobs in our country, and a personal tax code that has remained very broad and very fair in that period, has meant that our personal tax receipts are holding up quite well,” Mr Donohoe said. Deficit “In terms of what that says about our economy, it does indicate to me that momentum is building within our economy. “This is why decisions in relation to the medium term plan for public health are so important. Article Source: click here.
15 simple and affordable sustainability tips for SMEs
We know that it is a very difficult time for businesses and perhaps the budget for their sustainability agenda has been put on hold. As part of our Boost My Business initiative Fiona Alston asked sustainability expert and owner of Reuzi, Pat Kane, for some tips on how to implement small changes in your business that won’t break the bank, and may even save you money. Kane sells through her retail store of ‘good looking sustainable swaps’ in Foxrock village, Dublin 18 and her website. She also delivers workshops and events to educate businesses on what eco-friendly really means. Here are some of her simple tips for a more sustainable business: Start with a realistic goal – if you’re a small business, don’t try and overwhelm yourself with 25 areas that you need to improve all at once. Choose three to five areas that you can master. I think the more you add to the list of ‘to dos’ at first, the more overwhelmed you will feel – that is very demotivating for businesses. Never over promise when communicating to your customers – Think about your wording, think of what you are trying to achieve. What is your strategy? Don’t just say you are eco-friendly because everyone else is doing it. Educate yourself on what sustainability really means before you communicate it to your customers. Article Source: click here.
Bank campaign to advise those coming off payment breaks
With tens of thousands of households nearing the end of Covid-19 mortgage payment breaks, Irish lenders are preparing to roll out an information campaign to advise people of their options. Banking and Payments Federation Ireland (BPFI), an umbrella group that represents all the main lenders, is to introduce the campaign next week, with a big budget advertising campaign. The campaign includes a website – paymentbreak.ie – aimed at encouraging consumers to engage actively with their lender if they face continued financial difficulties. The banks want to avoid a repeat of what happened during the recession when some cash-strapped householders abruptly stopped paying their mortgages. BPFI estimates that close to 86,000 mortgage holders have availed of a payment break of up to six months since the coronavirus crisis hit in March. While many people have gone back to work and resumed paying their home loans, the banks are concerned that some householders will not be able to return to making previously contracted regular payments and will need their mortgages restructured. According to official figures, about 43,000 accounts were still on active breaks as of August 21st. Lenders have extended about 37,000 payment breaks beyond the original three-month period. Article Source: click here.
Revenue announces rules for business owners access to Covid-19 wage support
The Revenue Commissioners have clarified the rules under which small business owners can avail of the new employment wage subsidy scheme (EWSS) as of Tuesday, following a recent U-turn by the Government. The new subsidy, announced as part of the July Stimulus package, replaces the temporary wage subsidy scheme (TWSS), that was introduced earlier this year to help companies struggling because of the coronavirus pandemic. The Government was forced into reverse position late last month after initially barring proprietary directors – people who own more than 15 per cent of a business – from being able to access it. The U-turn came after small business owners expressed anger, saying that excluding them from the scheme would leave many of them without any income. Now the Revenue has outlined the conditions under which proprietary directors will be eligible to participate in the scheme, which pays a flat weekly sum of €151.50 or €203 depending on the normal earnings of the person. The Revenue says that for small business owners to be eligible for the scheme, proprietary directors must be on the company payroll and must have been paid wages over the year to the end of June. In addition, their company must meet the necessary criteria, which includes having a tax clearance certificate and be facing a 30 per cent slide in business compared to last year. Article Source: click here.
European stocks climb as China, US signal progress on trade deal
Stocks climbed in Europe and Asia alongside US equity futures as America and China signalled progress on their phase-one trade deal. Treasuries edged lower with the dollar. S&P 500 futures advanced and shares rose throughout most of Asia as the two countries reaffirmed their commitment to a deal despite disagreement over issues such as tech security and Hong Kong. European stocks tracked the move upwards, with all 19 industry groups in the green. Oil was steady as traders eyed Tropical Storm Laura, which is expected to strengthen into a hurricane before making landfall later this week. US gasoline futures rose to the highest since before the pandemic on concern over possible fuel shortages. In addition to geopolitics, investors are focused on vaccine progress as global economies reopen amid fresh oubreaks of the virus. Moderna Inc. said it’s near a deal to supply at least 80 million vaccine doses to the European Union. “A steady flow of progress with Covid-19 treatments/vaccines is delivering the latest boost to risk appetite,” Edward Moya, senior market analyst at OANDA, said in a note. He cautioned that “market breadth however does not support the surge to record high territory for US indexes.” Article Source: click here.
Expert warns crash in Irish construction likely to be biggest on record
The Irish construction industry is likely to have suffered the biggest quarterly crash in activity on record as a result of coronavirus, with output falling by more than 30 per cent, an industry expert has warned. The extent of the downturn will not be known until next month when the Central Statistics Office (CSO) publishes second-quarter growth numbers for the Irish economy and its constituent sectors. Ulster Bank chief economist Simon Barry said it was safe to assume the construction sector here would under-perform international aggregates by some way because of the tightness of restrictions imposed to curb the spread of the virus. He said the reversal is likely to be similar to that experienced by the UK. Figures last week showed construction activity in the UK fell by 35 per cent in the second quarter, compared to a 12 per cent decline in the euro area. Article Source: click here.
Unemployment shot to 23.1% in second quarter, CSO figures show
The Republic’s unemployment rate rose to 23.1 per ent in the second quarter of 2020, figures from the Central Statistics Office (CSO) show. The headline figure equates to 531,412 people but includes those on the Government Pandemic Unemployment Payment (PUP). It is hoped many of these workers will return to work when restrictions to curb the spread of the coronavirus are removed. The CSO’s latest Labour Force Survey, published this morning, gives a snapshot of the Irish labour market at the height of the coronavirus pandemic. It shows there were 2.22 million employed in the second quarter, corresponding to an employment rate of almost 65.7 per cent for people aged between 15 and 64 years. There were 118,700 people classified as unemployed, which gave rise to a jobless rate of 5.1 per cent. However, the adjusted measure of unemployment, which includes those in receipt of the PUP, was 23.1 per cent. The headline jobless rate fell to 16.7 per cent in July. These figures do not include the 370,000 employees in receipt of the Government’s Temporary Wage Subsidy Scheme (TWSS). Article Source: click here.
Post-Brexit trade deal negotiations to resume
Negotiations between the European Union and the UK on a post-Brexit deal are due to resume in Brussels. The two sides are still far apart on key issues including fishing rights and competition rules. The trade negotiations are scheduled to continue until 2 October – less than a fortnight before an EU summit. The EU has reiterated that negotiators must seal any deal “in October at the latest” to allow time for its ratification by member states. A spokesman for the EU Commission said the EU wants an “ambitious and fair partnership with the UK”. On Monday, a Downing Street spokesman said the UK government is still confident a deal can be reached in September. The trade talks resume amid fears of a deadlock, with both sides admitting after the last round of negotiations in London last month that they remained some way off a trade agreement. After those talks, the EU’s chief negotiator, Michel Barnier, said a deal looked “at this point unlikely” given the UK position on fishing rights and competition rules. Article Source: click here.
US stocks close at record high, rebounding from Covid crash
The S&P 500 closed at a record high on Tuesday, rebounding from huge losses triggered by the coronavirus pandemic and crowning one of the most dramatic recoveries in the index’s history. Trillions of dollars in fiscal and monetary stimulus have made Wall Street flush with cash, pushing yield-seeking investors into equities. Amazon and other high growth technology-related stocks have been viewed as the most reliable to ride out the crisis, while investors looked past fresh tensions between Washington and Beijing over Huawei. London stocks fell as lower oil prices and lacklustre earnings reports from mining company BHP and outsourcing firm Capita sparked a round of profit-taking. European stocks edged marginally higher. DUBLIN The Iseq in Dublin stayed virtually flat on thin trading volumes, helped by a solid performance from the banks, which made up for dips at some of the exchange’s trade heavy hitters. AIB rose more than 4 per cent to close the session at just under €1.08 per share. Meanwhile, Bank of Ireland closed ahead by 1.2 per cent to €1.90. Recruiter CPL Resources also rose by more than 2 per cent to €7.25, as the numbers at work rise and those on State supports continue to fall. Big Irish commercial players performed poorly. Paper and packaging giant Smurfit Kappa fell 1.7 per cent to €30.40. Food and ingredients group Glanbia fell 2 per cent to close at €9.08. Dalata hotel group fell more than 3.7 per cent to €2.46. Its fall came as Davy stockbrokers warned that investors were ignoring “positive developments” at the company, which has suffered due to the State’s onerous restrictions on travel, which has devastated tourism. Article Source: click here.