Belfast Telegraph

Dublin backs Stormont bid to harmonise corporation tax

By Lyndsey Telford and Michael McHugh

The Irish Government is 100% behind bringing Northern Ireland's corporation tax to the Republic's low level.

Finance Minister Michael Noonan has told a lunch for business leaders in Belfast that the controversial levy was one of the biggest factors in attracting foreign investment.

And the minister said tourism was one of the sectors where cross border collaboration benefits all.

"In the tourism sector, I am of the view that by working together we can deliver real benefit. That is why we fully support your application for a 12.5% rate."

He said foreign direct investment had been a "major advantage" to Ireland during the economic crisis. Ireland has come under repeated fire from other European countries, claiming its relatively low rate of 12.5% corporation tax was giving it an unfair advantage in luring global multinational firms, leaving the north struggling to compete with its much higher corporation tax of 23%.

Mr Noonan, who was guest at the CBI Northern Ireland annual lunch, is examining whether to raise the special 9% VAT rate for the hospitality and tourism sectors in next month's budget.

Belfast Telegraph

Popular

From Belfast Telegraph