Tax change ‘could see 20,000 jobs lost’

ANY increase in Ireland’s 12.5% corporate tax rate could see as many as 20,000 jobs lost in the next five years, it has been warned.

National Irish Bank (NIB) chief economist, Dr Ronnie O’Toole also warned that even a 5% increase, to 17.5%, could negatively impact further inward investment levels as multinationals’ concern would grow over further tax rate hikes. He added, however, that he was confident the Government could hold out against any external pressure to up the rate and said that increasing a corporate tax rate in any country which is attempting to re-ignite its domestic economy makes no sense.

Meanwhile, Dr O’Toole said that any lowering of Northern Ireland’s 30% corporate tax rate and a closing of the gap between it and here could actually benefit the Republic and boost cross-border exports from south of the border.