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40% of businesses in the Republic back lowering of corporation tax

By David Elliott

Published 16/05/2011

The movement backing a reduction in Northern Ireland's relatively high rate of corporation tax has found support from an unlikely source.

Two in five (40%) businesses surveyed in the Republic believe Northern Ireland should lower its corporation tax rate of 26% to bring it in line with the rest of Ireland at 12.5%.

The results from the latest quarterly Business Barometer, published by Close Invoice Finance, canvasses the views of businesses region by region across the UK and Ireland on a range of financial and economic issues.

Harry Parkinson, managing director of Close Invoice Finance in Ireland, said: "It would be hard to pinpoint a specific reason but surely the increase in cross-border trade experienced in the last several years must be making a contribution to what is perceived and understood as an ever-growing all-island economy.

"The continuing investment by companies from the Republic in Northern Ireland would also have an impact on this sentiment.

"From our work and experience south of the border it's clear companies there face the same challenges as those in this market. Cash flow remains a problem no matter where you do business."

In the run-up to the Assembly and council elections last week, First Minister Peter Robinson said that he wanted to see Northern Ireland's corporation tax rate reduced to 10% to increase competitiveness.

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