Ireland needs to lower tax to stay competitive, says IBEC

Business group IBEC has warned that Ireland needs to lower taxes to stay competitive in the wake of the UK vote to leave the EU.

It wants the Government to increase tax relief for entrepreneurs and investors.

It also suggested allowing people to earn more money before entering the higher tax band.

IBEC's policy director Fergal O'Brien said that Ireland needs to response aggressively, rather than taking a cautious approach.

“The UK’s going to be aggressive,” he said.

“We’ve already seen their roadmap in terms of they want more investment, they want to cut their corporation tax further.

“We’ve got to react, and the real sector of the Irish economy, which our policymakers in Government have been taking for granted for far too long is our own indigenous, Irish-owned firms.

“If they’re faced with trade barriers or regulatory barriers selling into the UK, they might decide to move there.”