Tax hike 'could decimate pharmachem sector'

THE 48,000 jobs in and dependent on the pharmachem sector could be decimated if EU tax harmonisation forces the Government to increase its 12.5% corporation tax, according to the Irish Pharmaceutical and Chemical Manufacturers Federation (IPCMF).

CSO statistics reveal that the entire sector exported products to the value of more than €39 billion in 2002, representing 42% of national exports and IPCMF chairman Conor O'Brien said the sector was enormously important to the economy.

Speaking at the IPCMF AGM annual dinner in Cork last night, he said: "any harmonisation of corporation taxes that leads to an increase in Ireland's 12.5% rate will trigger a flight of investment not just from Ireland, but from the EU as a whole."