Low Tax Essential For Ireland’s Continued Prosperity, Says Cowen
by Jason Gorringe, Tax-News.com, London
30 November 2004

External pressure on the Irish economy such as the falling value of the US dollar and high oil prices will continue to put pressure on Ireland to reduce its cost base and maintain its competitive edge through low taxation, Finance Minister Brian Cowen said last week.

In a Thanksgiving Day speech organised by the US Chamber of Commerce, Cowen warned that there are “some broad risks facing our economy.”

He continued: "These risks include the possibility that increases in oil prices will be sustained at current levels; the world economy might slow significantly next year; the dollar will continue to fall against the euro owing to the twin US fiscal and trade deficits."

Cowen stated that the “key challenge” will be for Ireland to control its cost base, reducing inflationary pressures whilst remaining attractive to international business, and he assured the business community that he has no plans to increase corporate tax.

"I know that corporation tax is a key factor in determining investment so I would like to assure you that the single 12.5 percent trading rate will continue to support the necessary stable enterprise environment which Ireland has so carefully nurtured over the years," he declared.