ISE: Cutting stamp duty will bring in foreign investment

The Irish Stock Exchange has welcomed the proposal to reduce the 1% stamp duty on all transactions in Irish shares to zero in the report by the Commission on Taxation today.

The exchange said that Irish stamp duty on share transactions is the highest in the Western world and an anomaly in global competitive markets.

A statement from the exchange said: "Stamp duty has real and negative implications for investors and pension funds and is a significant barrier to investment in Irish companies.

"Reducing this tax to zero will enable Irish companies to compete for foreign investment on the same basis as their international peers.

"It will also eliminate an uncompetitive cost of investing in Irish enterprise, for individuals, pension funds and other investors, domestic and international.

"Finally, it will remove a significant disincentive for foreign holding companies incorporating in Ireland, enabling Ireland to compete on a level playing field with other countries as a location for inward investment."