Corporation tax rate change is not on the agenda, states Irish Exporters Association (IEA)
At the launch today (23rd Nov) of the IEA export Ireland Survey of International Finance Practices of Exporters, Mark Fitzgerald, IEA president stated;
“The low corporation tax has been a key aspect of Irish industrial policy since the 1950’s when the Irish Exporters Association negotiated with Government for a 10% tax rate on manufacturing. Many other countries have evolved their industrial policy using differing taxation policies, the key issue now is to assess the tax contribution across the EU from corporation tax.’’
There is no substantive argument being put forward to reduce corporation tax in Ireland, which is now 12.5%. The main focus at EU level must be on the contribution that taxation of any type makes to the economic development of each country-- the Irish corporation tax rate returns 2.9% of GDP, where as in Germany it returns 1.1% of GDP and on average across the EU 2.7% of GDP.
The legal position on Ireland’s corporation tax rate is not in doubt or under threat, and neither is it in any other EU country. In case we need any further guarantee the Treaty of Rome and ‘’LISBON II’’ clearly confirms that tax rates are a domestic/sovereign matter for all EU member states.
Mark Fitzgerald further stated that, “notwithstanding Irelands advantages of a well educated, flexible and talented workforce with a proven track record for companies setting up in Ireland, the fact remains that the low corporation tax rate together with its certainty and its transparency is the single most important incentive we have both to attract new industry to the country and to drive ongoing capital investment by our existing industries in Ireland”.
However, he warned currency turbulence may put continued recovery of the Irish and Global economy at risk. Certain economies were particularly vulnerable to the huge variations in currency and monetary policies across the world.

“Currency disputes could easily degenerate into trade wars,” said the IEA President. “Thus we must recognize the important role of being part of the euro zone and supporting its structures, as part of our own budgetary and bank support measures.”
End.
For further information, please contact:
John Whelan, Chief Executive, IEA
Mobile: 087 927 1243