Irish Tax Institute Calls for Tax Cuts to Align Policy with Government Goals

Ireland entered 2024 with strong growth, but the Institute argues that recent tax rules are counterproductive. The Enhanced Reporting Requirements (ERR), launched in January 2024, oblige firms to report more details on employee benefits. This has led small businesses and restaurants to scrap modest staff gestures such as retirement lunches and gifts due to compliance worries. The Institute notes that these actions run opposite to the hospitality supports introduced in Budget 2026.

Shane Wallace, President of the Irish Tax Institute, stated that Ireland’s economic strength should not be taken for granted and that tax policy is working against its own intent, making Budget 2027 a chance to correct the mismatch. He added that taxation remains one of the most effective levers available to the Government.

Lowering the top personal rate could make Ireland more competitive for skilled talent, especially as rivals such as the UK and Germany maintain rates below 50%. Market participants have already reacted: the ISEQ Overall Index stood at 9,850 points, up 0.4% in the latest session, while Ryanair Holdings (RYA.I) held a market cap of roughly €18 billion and traded flat amid the debate. If the proposed cut proceeds, analysts expect a modest uplift in consumer‑facing stocks and a potential inflow of expatriate talent.