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Irish Times
09-06-2025
- Business
- Irish Times
Fiscal council predicts another surge in corporation tax
Ireland could be on the brink of another surge in corporation tax , according to the Irish Fiscal Advisory Council (Ifac) . Despite the current uncertainty surrounding global trade, the budgetary watchdog expects receipts from the business tax to rise by about €5 billion from 2026 onwards as additional revenue from the new minimum tax rate of 15 per cent over and above the State's headline rate of 12.5 per cent flows into the exchequer. Big multinationals with a turnover above €750 million have been liable to pay the higher rate since 2024 but are not due to make their initial payments under the new rate until the middle of next year. This is expected to boost tax receipts here by an additional €3 billion in 2026 and €2 billion in 2027. READ MORE [ Corporate tax receipts drop 30% as Trump's tariffs bite Opens in new window ] But there are several other trends likely to drive corporate tax higher in the short term, the council noted in its latest fiscal assessment report. Most of the biggest taxpayers here are not currently impacted by trade tensions and are forecast to report increased profits this year resulting in higher tax payments, it said. Some 60 per cent of the State's €28-€29 billion corporate tax base is paid by 10 large firms in the IT and pharma sectors here, which have so far been exempt from US tariffs. Several of these firms have also been availing of generous tax-cutting capital allowances which are due to run out, meaning they will be liable for more tax. The council also suggested that the current surge in pharmaceutical exports, which jumped by 154 per cent in the first quarter as firms rushed to get merchandises into the US before tariffs, is likely to result in bigger tax payments this year 'even if exports slow down for the rest of the year'. As a result, the council said the Government's forecast that corporate tax receipts would remain broadly unchanged at €28 billion in 2026 was 'not realistic'. While highlighting the potential upside risk to corporate tax, Ifac chairman Seamus Coffey said the tax was extremely volatile and could be subject to steep falls as well as increases. 'In the short term, do we see anything that might lead to a downside risk? No, we don't see it but that doesn't mean it's not there,' he said. 'That's very much firm specific ... that's down to the profitability and decisions these companies make, whereas we're looking at broad macro trends that can influence corporation tax,' he said. Mr Coffey said the State's corporate tax base was currently between €28 and €30 billion but 'go four or five years you could have a forecast range of plus or minus €15 billion.' In its latest report, the watchdog also took aim at the Government 's spending plans, claiming they lacked 'credibility'. It said the Government had originally projected spending in 2025 to be €6.9 billion higher than in 2024 but post-budget overruns meant spending in 2024 ended up being €3.2 billion higher. Despite this, the forecasts for 2025 remained unchanged. 'This is simply not credible,' it said. It also noted that current spending grew at a rate of 5.9 per cent during the first five months of this year amid higher-than-expected spends on education, health and justice when the Government forecasts are for a full-year increase of 1.4 per cent. The council also claimed that the Government was failing to provide medium-term spending forecasts and failing to commit to any meaningful fiscal rule that would anchor annual spending increases.
Times of Oman
05-06-2025
- Business
- Times of Oman
Lower wage growth impacting consumption; tax cuts and rate cuts tools to spur growth: Report
New Delhi: Weakening wage and job growth cycle is impacting consumption sentiment, and tax cuts and rate cuts will help accelerate momentum, according to a report by ICICI Bank Global Markets. The report highlights that wage growth for listed Indian companies nearly halved in the financial year (FY) 2025, slowing to 7.5 per cent from an average of 15 per cent year-on-year (YoY) between FY22 and FY24, impacting consumption. The deceleration in wage growth can be attributed to the tepid demand and global economic uncertainty. The report adds that the slowdown, coupled with high inflation and elevated interest rates, has eroded consumers' discretionary income, particularly in urban areas. Spending across sectors has dampened. "Lower interest rates should lead to further recovery in consumption as repo-linked loans get repriced lower and reduce the interest outgo for consumers," according to ICICI Bank Global Markets report. "We believe further monetary support is required to spur consumption when inflation is easing," it said. Backing its assertion, the report added that Fast-Moving Consumer Goods (FMCG) sales in urban centres are trailing rural markets. In contrast, passenger vehicle sales growth has sharply decelerated to 4.5 per cent in FY25 from 8.8 per cent the previous year. On the job growth front, the report added that once a strong hiring engine, the IT sector continues to grapple with demand challenges from tech disruptions, monetary tightening, and trade volatility. Net hiring peaked at 293,000 in FY22 and saw a net contraction of 70,000 by FY24. The Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, according to the Ministry of Statistics and Programme Implementation's official data. While the economic growth was 7.4 per cent in the January-March quarter (Q4) of FY25. This was a sharp rise from the 6.2 per cent recorded in the previous quarter. Given the underlying weakness in urban demand, the government announced an income tax relief of Rs 1 trillion in the Union Budget 2025-26. The other factors favouring a consumption recovery are lower food inflation as well as the recent uptick seen in GST collections. In the last two months we have seen a visible acceleration in GST collections, with gross GST revenues increasing by 16.4 per cent YoY in May and 12.6 per cent YoY in April, respectively.
Times of Oman
05-06-2025
- Business
- Times of Oman
Lower wage growth impacting consumption; tax cuts and rate cuts tools to spur growth: Report
New Delhi: Weakening wage and job growth cycle is impacting consumption sentiment, and tax cuts and rate cuts will help accelerate momentum, according to a report by ICICI Bank Global Markets. The report highlights that wage growth for listed Indian companies nearly halved in the financial year (FY) 2025, slowing to 7.5 per cent from an average of 15 per cent year-on-year (YoY) between FY22 and FY24, impacting consumption. The deceleration in wage growth can be attributed to the tepid demand and global economic uncertainty. The report adds that the slowdown, coupled with high inflation and elevated interest rates, has eroded consumers' discretionary income, particularly in urban areas. Spending across sectors has dampened. "Lower interest rates should lead to further recovery in consumption as repo-linked loans get repriced lower and reduce the interest outgo for consumers," according to ICICI Bank Global Markets report. "We believe further monetary support is required to spur consumption when inflation is easing," it said. Backing its assertion, the report added that Fast-Moving Consumer Goods (FMCG) sales in urban centres are trailing rural markets. In contrast, passenger vehicle sales growth has sharply decelerated to 4.5 per cent in FY25 from 8.8 per cent the previous year. On the job growth front, the report added that once a strong hiring engine, the IT sector continues to grapple with demand challenges from tech disruptions, monetary tightening, and trade volatility. Net hiring peaked at 293,000 in FY22 and saw a net contraction of 70,000 by FY24. The Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, according to the Ministry of Statistics and Programme Implementation's official data. While the economic growth was 7.4 per cent in the January-March quarter (Q4) of FY25. This was a sharp rise from the 6.2 per cent recorded in the previous quarter. Given the underlying weakness in urban demand, the government announced an income tax relief of Rs 1 trillion in the Union Budget 2025-26. The other factors favouring a consumption recovery are lower food inflation as well as the recent uptick seen in GST collections. In the last two months we have seen a visible acceleration in GST collections, with gross GST revenues increasing by 16.4 per cent YoY in May and 12.6 per cent YoY in April, respectively.
Reuters
02-06-2025
- Business
- Reuters
Infosys CEO among highest paid in Indian IT as compensation rose 22% to $9.4 mln last fiscal
BENGALURU, June 2 (Reuters) - Infosys ( opens new tab CEO Salil Parekh's compensation rose 21.7% to 806.2 million rupees ($9.44 million), the company said in its annual report on Monday, making him one of the highest-paid Indian IT chiefs currently in office. Parekh, the longest-serving non-founder CEO at the IT company, earned a fixed salary of 79.4 million rupees and bonuses of 231.8 million rupees. The largest portion, 495 million rupees, resulted from the chief executive of India's No. 2 IT services firm exercising his stock options. In comparison, Parekh earned $7.9 million in 2024 and $6.76 million in 2023, with the rise in pay, mainly due to a greater number of stock options exercised during the year. For the financial year 2025, Infosys reported a revenue growth of 4.2% in constant currency terms, falling short of its forecast of 4.5%-5%. For the current fiscal year, it forecast a flat to 3% growth in revenue, signalling a weaker business environment. India's $283-billion IT sector is facing another year of slowing growth, partly due to the U.S. tariff policies, which complicate forecasting market conditions in key markets and client segments. "Majority of Infosys revenue is from the U.S. and other global markets. The compensation is in line and consistent with what companies of this scale and size pay globally. Boards of Indian tech companies are indeed aware and need their leaders to be retained and paid appropriately in this challenging environment," said K Sudarshan, managing director at executive search firm EMA Partners. K Krithivasan, CEO of Infosys' larger rival Tata Consultancy Services ( opens new tab earned $3.11 million, and smaller rival Wipro's ( opens new tab CEO Srinivas Pallia earned $6.28 million, according to their latest annual report. Infosys is one of the two among India's top five IT companies that have retained their CEO at the helm over the last 18–24 months, with HCLTech being the other. ($1 = 85.3600 Indian rupees)
Times of Oman
16-05-2025
- Business
- Times of Oman
Indian real estate sector sees cooling demand despite strong Q4: Report
New Delhi: India's residential real estate sector has shown signs of slowdown, after witnessing a period of growth, according to a sector update report by Antique Stock Broking. "Although all new project launches by listed companies under our coverage received a strong response in 4QFY25, most Expressions of Interest (EoI) were built in 2Q/3Q," the report said. However, walk-ins and conversions have seen a slowdown patch in recent months, weighed down by "financial market volatility, a gloomy IT sector outlook, and economic growth concerns prompting buyers to delay decisions in search of greater certainty or better deals." says the report. Similar to that, the premium and luxury segments also witnessed lower demand. According to the report, the rising supply in the Mumbai Metropolitan Region (MMR) has helped buyers to have more negotiating power. Even reputed developers are offering incentives or discounts in South and South-Central Mumbai. Demand in the mid-income segment across suburbs and Thane remains steady but lacks earlier enthusiasm. Similarly, southern cities like Bengaluru and Hyderabad are also witnessing subdued demand, particularly for properties priced above Rs 20 million. Contrary to that, demand for below Rs 20 million remains intact, despite of approval challenges persisting in Bengaluru. In the northern part of the country, the pace of new project launches has slowed, but well-located developments continue to attract buyers. The report, however, adds that despite the overall cooling, select developers have outperformed expectations. Aditya Birla Real Estate, Godrej Properties, Prestige Estates, and Macrotech Developers all posted better-than-expected pre-sales in Q4. Analysts believe much of this demand was frontloaded in earlier quarters. Looking ahead, while inventory levels remain comfortable, the sector may experience price stability or mild corrections, especially if economic headwinds persist. Investors and homebuyers alike appear to be exercising greater caution in what is becoming an increasingly supply-rich and demand-sensitive market.
