Ireland cannot continue low tax rates, says EU Economics Commissioner

The EU Economics Commissioner Ollie Rehn said today that Ireland's days as a low-tax country are over.

The Commissioner was responding to questions about whether Ireland's corporation tax rate should be included in moves to increase revenues.

He said while he did not want to comment on specific taxes, it was a fact of life that in the coming decade Ireland will not continue as a low-tax country.

Taoiseach Brian Cowen responded however that it will be up to the Irish Government to decide if the country's tax corporation tax rate should be altered as part of the four-year budgetary plan.

“These are matters for national governments to determine for themselves,” said Cowen.

In a statement issued later, Fine Gael leader Enda Kenny said that his party is committed to protecting the 12½% rate, which has been responsible for attracting much-needed

investment and business into Ireland.

He said the Taoiseach's refusal to rule out changes to the tax rate was unhelpful.