Mattie McGrath has said that Ireland must protect it corporation tax rate and also reject any move to new common or consolidated tax regime.
“There is huge financial and symbolic significance associated with the 12.5 percent tax rate, which has drawn tens of billions in foreign direct investment, much of it from the United State,” said the Deputy.
“This is attracting high skilled jobs in areas such as technology and pharmaceuticals.
“Raising corporate tax rate clearly out of the question, it is protected under the EU treaties and we have a veto on it – this means there is no possibility of Ireland being forced into a change contrary to what is often reported,” said McGrath.
“The European Commission has been looking at the introduction of a new tax system, referred to a Common Consolidated Tax.
“I believe that this would be disastrous for us. It would not improve the competitiveness of Europe and would not contribute to economic development,” he said.
“Most worryingly the introduction of any such common tax would undermine our national sovereignty and the principle of subsidiarity on which the EU is based,” said McGrath.
“Choices on taxation and expenditure are matters for each Member State.
“It is for each Member State to decide on the structure of its own tax system reflecting its historical traditions and social and economic priorities.”