The Irish Congress of Trade Unions (ICTU) is lodging a formal complaint with the European Commission about the Budget.
ICTU believes an extension of the Business Expansion Schemes in the Budget will benefit only high earners who do not pay tax on the money they put into the schemes.
The extension of the schemes by the Government has to be approved by the European Commission.
In the Budget the amount an individual can invest increases from €31,000 to €150,000, and the amount a company can receive rises from €1m to €2m.
Small business lobby group ISME called the complaint a 'sabotage on the economy'. It said the scheme had not been altered since the 1980s and was needed to foster investment in growing small Irish firms.
However, the Irish Taxation Institute (ITI) called on ICTU to reconsider its decision to lodge a complaint on changes to the BES scheme.
ITI President, Dermot O'Brien said innovative tax policies stimulate economic activity, create employment and generate revenue for investment in public services.
'A proper functioning BES system allows Government to direct investment towards sectors where it is most needed, like infrastructure and manufacturing' he said.
