Corporation tax rate ‘remains vital’

The Irish Engineering Enterprises Federation says the retention of the 12.5% corporation tax rate is vital to keep the sector in competition.

In its budget submission, the IEEF said the low rate of corporation tax was “absolutely critical to retaining the current level of output, investment and employment in the Irish engineering sector”.

The IEEF said Finance Minister Brian Cowen should ensure that the cost of doing business in Ireland is lowered on budget day.

It highlighted local government charges as a significant cost item to the industry, with the burden of financing local government being largely borne by business.

“The IEEF is calling on Government to introduce a cap on local government charge increases,” it said.