MEASURES in the Budget, aimed at helping small companies and the Minister for Finance's admission that corporation tax rates must be substantially reduced, were broadly welcomed by the business sector.
Mr Quinn said there was a need to reduce corporation tax - which was reduced yesterday by 2 per cent to 36 per cent - to much lower levels. He said there is "a clear need" to reduce the standard rate of corporation tax closer to the 10 per cent rate which applies to manufacturing and traded services.
"The Government is also studying the appropriate corporations tax structure for the longer term, bearing in mind the central importance of the 10 per cent rate for inward investment including the IFSC," he said.
Mr Quinn also unveiled a range of measures designed to help small companies get easier access to funding and provided more tax relief to facilitate the transfer of family owned businesses.
It allows for greater tax relief for families passing on businesses or farms to younger generations.
The Minister said he was raising the rate of tax relief on properties transferred by gift or inheritance from 75 per cent to 90 per cent.
The car value thresholds used for calculating capital allowances for new cars and allowable expenses for all cars which are used for business have been increased from £14,000 to £15,000.
Many of the Budget provisions were welcomed, especially the reductions in corporation tax.
Dublin Chamber of Commerce - welcomed reductions in employee's PRSI as a significant measure to stimulate employment growth.
The Budget was a "slap in the face" for small businesses, according to the Small Firms Association chairwoman, Ms Lorraine Sweeney. While the Minister for Finance has acknowledged the small business sector's success in creating jobs in the economy, Ms Sweeney said, his Budget did nothing to reward entrepreneurs.
The Vintners' Federation of Ireland welcomed the decision not to impose any tax increase on drink and the reduction in corporation, and personal income tax rates. Mr Paul O'Grady, the federation president, said Ireland has the highest rate of tax on beer of all European countries and is second highest on spirits.