Noonan outlines tax hike impact

Finance Minister Michael Noonan has said a 2.5% rise in the corporation tax rate would reduce inward investment by nearly 10%.

In a written Dáil response to Fine Gael’s Brendan Griffin on the issue, he said: “Any increase in the 12.5% rate could unfortunately result in a behavioural change on the part of taxpayers and potentially have a negative impact on economic growth as a result.”

He further stated: “Even a marginal change in the rate of corporation tax would undermine both our long- held stance on this issue and the certainty of business, domestic and international, in our resolve to maintain that position.”