Report Recommends Cut In NI Corporate Tax Rate
A report published this week by the Economic Research Institute of Northern
Ireland has suggested that cutting the NI corporate tax rate to 12.5% - the
rate in place in the Republic - could significantly boost local economic growth,
and create hundreds of thousands of jobs. According to the ERINI findings, such a corporate tax reduction would initially
reduce tax revenue, but the losses would be recouped within ten years, leaving
Northern Ireland in a more favourable financial situation than currently. Speaking to the media with regard to the report, Sir George Quigley, chairman
of the Industrial Taskforce (for which the report was commissioned), suggested
that: "The kinds of jobs we would be angling for, and the kinds of jobs, for
example, that have come to the Republic with this kind of tax regime, are high
value-added jobs. These are very profitable companies, they are backed by massive
R & D resources (research and development), managerial resources, all the
rest of it." Commenting on the possibility that - given Northern Ireland's unique relationship
with the United Kingdom - a corporate tax cut might attract EU scrutiny, Sir
George observed of the European Commission that: "I expect they will be keen to find ways in which our economic performance
can be boosted and to help us stand on our own feet." .
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