THE majority of businesses in Northern Ireland want to see the way rates are calculated reformed.
It follows the revaluation of rates for firms earlier this year which saw the valuation for 61 per cent of companies increase.
And four out of five respondents to the Northern Ireland Chamber of Commerce's latest quarterly economic survey said rates should be reformed to reflect economic conditions, rather than property value.
However, the survey also found that for two-thirds of companies, the change in rates had had limited impact.
Just under a quarter of those surveyed said the impact is significant.
Meanwhile, 75 per cent of firms believed small business rate relief should reflect business size rather than property size.
Northern Ireland Chamber chief executive Ann McGregor said: "Business rates is a tax that hits companies of all sizes long before they a make profit, and impacts on business growth and investment. NI Chamber members are of the view that the business rates system in Northern Ireland is in need of reform to make it more reflective of economic conditions.
“Despite the challenge, successive finance ministers, Arlene Foster and Simon Hamilton, have declared their intention to undertake a fundamental review of the system following the non-domestic revaluation that took effect in April this year, and NI Chamber is currently engaging with the department on this."
Sinn Fein MLA Phil Flanagan, deputy chairman of Stormont's enterprise committee said the rates revaluation "has had a deeply negative impact on very many businesses".
"Statistics provided to me by the Department of Finance have revealed that 44,640 (61 per cent) of non-domestic properties across the north have had their Net Annual Valuation (NAV) increase as a result of the recent revaluation.
"Most worringly, the NAV of 3,100 (6 per cent) of these more than doubled overnight. This presents a huge challenge for the profitability of these firms as their cost base has significantly expanded with no reciprocal increase in their productivity or profitability."
He said it was "high-time that the non-domestic rating system in the North was overhauled in order to relieve the mounting pressures on those small businesses working on a very narrow profit margin."
The survey also found that exports remained a major issue for companies in the manufacturing and services sector with exchange rates also a significant concern.
However, the recovery remained in positive territory for most key balances.
Ms McGregor said the results of the survey "demonstrate a continued trend of growth in sales within the home market by Northern Ireland firms".
Brian Murphy, partner at BDO said although the findings were "encouraging", there remained "numerous challenges".
"Those raised in the survey include; ongoing uncertainty in relation to the euro fluctuations and continued cost pressures through business rates, increasing labour costs and raw material costs. But while the road ahead may be bumpy, there are great opportunities on the horizon," he said.
