Isme Urges Government to Prioritize Indigenous Businesses, Reduce Multinational Reliance
Isme urges the Irish Government to shift enterprise policy towards indigenous businesses, citing a «systemic threat» from overreliance on 297 multinationals generating 84% of corporation tax. The group proposes tax reforms and increased support for local firms to build a resilient, home-grown economy.
Isme, a business lobby group representing Irish small and medium-sized companies, has called on the Government to refocus its enterprise policy on supporting indigenous businesses and reducing its «dangerous overreliance» on multinationals.
In its pre-budget submission, Isme highlighted that 0.1 per cent of Irish companies (297 firms) generated 84 per cent of total corporation tax receipts last year, posing a «systemic threat» to public finances and the domestic economy. Chief executive Neil McDonnell stated that the current tax base, built on a small number of companies, is unsustainable and that enterprise policy has favored overseas multinationals over local businesses, particularly in R&D and employee engagement.
Isme proposes measures for Budget 2027, including changes to capital gains tax (CGT) with a standard rate of 25 per cent, a 20 per cent rate for intellectual property, and taxing dividends under CGT rates. They also seek reform of R&D tax credits, increased risk capital activation, and a greater emphasis on attracting «symbiotic» foreign direct investment that benefits indigenous companies.
Additionally, Isme advocates for increasing the Skillnet budget to at least €100 million and reforming apprenticeship and vocational education systems to align with top-performing European small economies.