Labour Pledges No Tax Hikes In Ireland

by Caroline Maxwell, Tax-News.com, London

27 March 2002

In common with almost all of the other major political parties in Ireland, in the run-up to the general election Labour has pledged not to increase income or corporate tax levels.

Speaking on Monday, Labour Finance Spokesman, Derek McDowell, promised that if his party is elected to government, corporation tax for multinational companies will remain at 12.5% until at least 2007, and the current levels of personal income tax will also be maintained.

However, in view of the fact that the Irish health service is in need of major reform and investment, he warned that: 'Any government in power at the end of the year will have to borrow or make deep cuts in spending.'

Speaking to the Irish media earlier this week, Mr McDowell criticised the economic policies of the other parties, arguing that they are promising 'something for nothing'.

'There's no such thing as something for nothing, and the public knows that well,' he explained.

The Labour party has also pledged to tackle the growing divide between rich and poor in Ireland, which Finance Minister Charlie McCreevy has been accused of deepening, if elected to Government.

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