In a recent submission, Digital Business Ireland has urged Government to make Budget 2022 a ‘transformational budget’ – fit for the new-age, digital economy
Digital Business Ireland, the voice of the digital commerce sector, has called on Government to use Budget 2022 as an opportunity to recognise the significant growth potential of the Irish digital economy. The representative body has issued a number of recommendations as part of its pre-Budget submission – proposals which, it believes, can facilitate Ireland in becoming a world leader in digital enterprise and innovation. In the context of the exponential growth of ecommerce, Digital Business Ireland asserts that now is the opportune time for Government to issue direct supports to SMEs, to ensure that they can access these new marketplaces.
Forming part of its submission to the Department of Finance, Digital Business Ireland has recommended the following:
- A restoration of the 21% VAT rate to encourage spending with Irish online businesses
- The introduction of a 3-month digital hub voucher for SMEs – to help businesses understand the full potential of digital hubs
- Tax incentives for businesses that can demonstrate improvements in their carbon footprint through the use of digital operations
- Combining digital and sustainable training supports for retail and service-based businesses through relevant Skillnet bodies
- An expansion of the Digital Skills for Citizens Scheme, to include SME staff
- Broadening the remit of eligible spend under the DTOV to include consumer review services and company product and or services validation in order to help SMEs to grow their digital sales
As part of the submission, Digital Business Ireland has cited the 16% growth in the digital segment of Ireland’s economy pre-Covid-19, as a key figure indicative of the high growth potential of digital.
Speaking today, Secretary General of Digital Business Ireland, Lorraine Higgins said:
“Ireland has the potential to be a world-leader in digital innovation – the significant growth in the digital segment of our economy over the past year, is demonstrative of this. Over the last eighteen months, we have witnessed the significant growth of ecommerce and Irish businesses are keen to unlock the opportunities which lie in these new marketplaces.”
“The digital economy is set to be the dominant driver of Ireland’s growth in the years ahead. Key to safeguarding this, is encouraging businesses to embrace digital transformation. Despite Ireland being among one of the most digitalised countries in Europe, our digital economy is operating at two different speeds. While large multinationals are excelling, many indigenous SMEs are struggling to embrace these changes.”
“By investing in key digital infrastructure, Government can ensure that Budget 2022 is a transformational budget. Digital transformation is more than just technology – putting people at the centre and enabling the acquisition of specialist skills is essential for a successful transition. Digital Business Ireland’s pre-Budget submission makes a number of concrete recommendations, which, if implemented by Government, will facilitate Ireland in becoming a world leader in digital innovation – and ensure that no business is left behind on that journey.”
To read DBI’s Budget 2022 Submission please click here