On Tuesday and Wednesday the Dáil will debate a motion tabled by Fianna Fáil reaffirming Dáil Éireann’s support for Ireland’s established Corporation Tax policy.
Commenting on the motion, Fianna Fáil Leader Micheál Martin said “Ireland’s Corporation Tax policy is about one thing – jobs. Clarity on the policy and consistent support for it has allowed Ireland to compete on the international stage for investment and jobs and it remains a central plank of the country’s recovery strategy. Numerous attempts to encourage us to change our rate have been successfully resisted down through the years, while there have also been ongoing attempts to establish a consolidated corporate tax base, which again Ireland has consistently opposed. Fianna Fáil’s view on both these issues has been clear and consistent – there cannot and must not be any change or any fudge. Clarity about Ireland’s corporation tax policy is absolutely critical. In tabling this motion and in asking for cross-party support, we are seeking to emphasise and copper-fasten that clarity.
“Different European states have different tax strategies. We respect the right of each country to pursue economic success in any way they wish within the rules. We only demand the same right.
“The intention of the motion is to give the new Dáil the opportunity to show the cross-party consensus there is to retain our current tax rate and oppose any effort to introduce a higher rate either directly or through the Commission’s Consolidated Corporate Tax Base proposal.
“Last November we supported a similar motion put down by the then Opposition and following the Taoiseach’s comments in the Dáil last Tuesday we expect that this motion will receive the support of nearly all Deputies – marking a strong statement before the upcoming European Council meeting that Ireland’s position on this issue has not changed and will not change.”
Text of Fianna Fáil Motion:
That Dáil Éireann:
- confirms its absolute commitment to the maintenance of the 12.5% rate of corporation tax;
- is opposed to any Irish participation in proposals to introduce a Consolidated Corporate Tax Base within either the Eurozone or the European Union as a whole;
- notes the clear evidence that investment attracted to Ireland by our policy on corporation tax is largely won against non-European Union countries and is therefore a net-benefit to the EU; and
- believes that any move away from these established policies would undermine Irish employment and prospects for a strong recovery with serious implications for the wider European economy.