The Budget will do little for competitiveness in the economy, accountants claimed last night. The Institute of Chartered Accountants in Ireland accused the Government of introducing a "rainy day Budget" and warned of a "very bleak" outlook in 2003 if the economy did not recover next year.
Its tax spokesman, Mr Kieran Ryan, said the same-year payment of corporation tax would have "significant implications" for investors. He said: "This move represents a dramatic clawback on the gains made by the reduction in corporation tax over recent years."
In addition, the Institute of Certified Public Accountants said the Government's failure to restore the ceiling on employers' PRSI and the one-point increase in VAT would place "significant pressures" on firms.
Welcoming taxation measures to make investment in rental property more attractive, its chief executive, Mr Eamonn Siggins, expressed "concern" at the Government's inflation target of 4.2 per cent.