The employers group IBEC is calling on the government not to collect the property tax directly from workers through the income tax system.

In its pre-Budget submission published this morning the organisation says although it is in favour of a property tax this method of collection will only discourage work.

The group is also warning the government that any increase in labour costs either through a PRSI increase or by pushing sick pay costs onto employers will cost jobs.

The group representing Irish business says collecting the new property tax through the income tax system was the wrong approach as it will make taking up a job less attractive and risks fuelling wage pressures.

The submission sets out what they see as a range of fiscal priorities for government focusing on supporting job creation and restoring domestic demand.

IBEC says these are key elements of its Driving Ireland’s Recovery campaign which was launched earlier this year.

IBEC Director-General is Danny McCoy.

“Any increase in labour costs will make companies less likely to take on new staff and will push already struggling firms out of business” he said.

“The government’s proposal for an extra tax on jobs through a statutory sick pay scheme would cost at least 3,500 jobs both directly and indirectly in the economy”.

“Any hike in PRSI would have a similar negative effect” he added.
/> Mr. Mc Coy concluded that “Austerity alone is not the answer, we need government to deliver the conditions for economic growth”.

He believes public sector allowances should be tacked as well.

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