The Minister for Enterprise, Trade and Innovation Batt O’Keeffe has said he is confident Ireland will not suffer from a reduction in the UK’s corporation tax.
The rate is to be cut by 1% next year from 28% – and by a further 1% each year afterwards until its falls to 24%.
However, Ireland’s corporation tax is currently less than half that of the UK at 12.5%.
Mr O’Keeffe believes the rate will ensure Ireland continues to have a strong advantage when attracting inward investment.
And the Irish Times records his thoughts on the rise in VAT
The rise in the UK rate of VAT will stimulate the economy of this State and will create jobs, Minister for Enterprise Batt O’Keeffe said.
Mr O’Keeffe said this decision, coupled with the decline in value of the euro against the sterling pound, would be the effect of the British government’s decision today.
“The move will increase consumer demand and generate retail sales at a time when we need every possible support to create jobs and build for economic recovery,” he said.
“The increased VAT rate in the UK, allied with falling value of the euro against the pound sterling, will discourage cross-border shopping and incentivise more of our consumers to spend their money in this jurisdiction.”