Ireland’s biggest accountancy body says any further increase in income taxes in December’s budget will stifle economic growth.

In a statement issued today, Austin Slattery, president of Chartered Accountants Ireland, said that, aside from the €500 million the property tax would raise, the Government’s other budget targets would have to be met from savings and spending cuts.

“We accept the need for a property tax as a replacement for stamp duty, but that is as far as Government should go this year in increasing taxes,” he said. “Further increases to direct levies on business such as PRSI, or to indirect levies such as motor taxation, carbon tax and pension funding, cannot be met by Irish business without further jeopardy to employment.”