Confederation of British Industry (CBI) called on the UK government to reform the “outdated” tax rate on businesses, to improve the corporate tax benefits, as well as maintain existing pension tax benefits.
CBI says that the government should make the tax system and the regulatory system more competitive in order to avoid the burden on business.
According to the analysis of the CBI the recent changes in the policy will cost businesses approximately 12.9 billion dollars by the 2020-21.
CBI recommends the UK Chancellor George Osborne to improve the tax rate on business by switching the multiplier by which business rates are uprated from retail price index to the consumer price index. CBI added that small businesses must be relieved of the tax altogether.
And Confederation urged to increase depreciation to improve support for investment.
Finally, the CBI called on the government to establish a clear direction on energy policy and support for investment in low-carbon energy sources.
Britain should be able to find its way out of the deficit – the government must send a clear signal that it stands for the prosperity of the business.
Author: Olena Kutova
senior lawyer of the Finance Business Service company