Fianna Fáil Senator Aidan Davitt has called for a debate on the corporate tax rate in Ireland.
Speaking in the Seanad, Senator Davitt said: “There is a need to have proper debate and discussion with the Minister of Finance on the future of the minimum headline rate which as we all know has been a quite a hot topic. For context, I am watching the developments both in the United States and in Poland. In the United States, the Republican Party in the House is blocking the agreement to accept the global minimum rate, which the Democratic Party so can’t implement although he’s in power. It’s definitely going to be a problem. The overall rate is dead in the water if it’s not implemented there.
“The Polish government has not yet signed it either. This resulted in the issue being taken off the agenda of last month’s ECOFIN meeting. rate is implemented It’s a I would say it will be longer because unless there is a change in America, which is very unlikely, and in Poland, which is probably also unlikely for a while it’s not going currency.”
Senator Davitt added: “Ireland has used our corporate tax system very successfully as an effective tool for economic development for decades. It is estimated that the Ministry of Finance will lose a sum of approximately 2 billion euros per year, which is not little. Against the backdrop of the crisis in the cost of living, soaring inflation, the war in Ukraine and the plethora of other complications looming on the horizon.
“Just this week, the Irish Tax Advisory Council warned that public finances are now too dependent on corporation tax, which has been estimated to have brought in a total of €22 billion since 2005. We should certainly look now carefully our fiscal policy and how best to support businesses, foreign investment, and ultimately the people of this country when it comes to redistributing those funds at budget time. »