Ireland unveils 6.5 billion euro coronavirus business package

DUBLIN: Ireland will allow firms impacted by the coronavirus crisis to warehouse tax liabilities for 12 months, offering a"lifeline" as part of an additional package of business supports that could reach 6.5 billion euros , the government announced on Saturday .

The government concentrated its initial 8 billion euro fiscal response on increased jobless payments and wage subsidies for workers, with 1 billion euros of liquidity supports offered to reeling firms. Highlighting the scale of the economic shock, Donohoe said firms had deferred 800 million euros of tax in March alone and that that figure could reach 2 billion euros by June.He also hoped the Ireland Strategic Investment Fund's new equity fund would lead to investment far in excess of the 2 billion euros available capital as it will seek to maximise added capital from existing shareholders and new co-investors.

Hotels, restaurants and pubs, which will only be allowed operate at limited capacity when they open, have called for the VAT rate for the hospitality sector to be temporarily cut to 0 per cent from 13.5 per cent and for state funds to help them pay rent.

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