Corporation tax decision needed soon – CBI
A DECISION on the powers of the Executive to reduce corporation tax in Northern Ireland is needed by early summer to boost business confidence and help stimulate investment the head of the CBI in the province said yesterday.
Regional chairman Ian Coulter, was speaking following the release of the UK government’s response to the Northern Ireland Affairs Report on Corporation Tax.
The report acknowledges the work done by the Northern Ireland Affairs Committee and recaps the key issues highlighted by consultation received from across the business and political spectrum.
Stating its backing in principle for the devolution of the power to vary corporation tax to the Northern Ireland Executive, the report says it is aware of the consequences of such a move and promises to report back by the summer with its proposals.
Mr Coulter said there should be no further delays to backing a critical development tool.
“I strongly welcome the Executive’s commitment to lower corporation tax in the draft Programme for Government,” he said.
“A lower corporation tax rate will encourage investment, economic growth and create several tens of thousands of new jobs over the medium and longer term.
“While it will help to attract significantly more foreign direct investment (FDI) the benefits to small and medium sized businesses across Northern Ireland should not be underestimated – evidence from the Republic of Ireland and elsewhere suggests that around half of the new jobs created will be in these local companies.”
The report, he added, formally recognised that Northern Ireland has a unique set of circumstances quite different from Wales and Scotland and therefore deserved individual consideration.
“The report also emphasises the importance of the Ministerial Group which has been established to address a number of key issues which emerged from the HM Treasury consultation last year,” he said.
“Both points are welcomed but it is important our Executive continues to put pressure on getting a positive decision by early summer.”
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Weather for Belfast
Tuesday 29 May 2012
Today
Sunny spells
Temperature: 12 C to 21 C
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