Finance Minister warns against relying on high corporate tax receipts

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The Minister of Finance has warned of the dangers of relying on high levels of corporate tax receipts, saying they create an “artificially benign picture” of the public finances.

Paschal Donohoe said there is a clear need to pull back on the country’s reliance on corporate tax receipts.

“There is a clear need to reduce our dependency on corporate tax receipts, which now account for 1 euro in every 4 euro collected in exchequer tax revenue, a figure that is well in excess of both historical and international norms.“Moreover, half of corporate tax receipts are sourced from just 10 large firms. So to put it another way, around 1 euro in every 8 euro in total tax collected by the State is sourced from a very small number of firms.

Those attending the event include representatives from community, voluntary and environmental groups, business, unions, research institutes and the academic community. “This situation was subsequently exacerbated, to an enormous degree, by the illegal and reprehensible Russian invasion of Ukraine – with, in addition to the terrible humanitarian impact, its effect on international energy and commodity flows.

“Most recently the European Central Bank has reduced its growth forecasts and raised its projections sharply for inflation.

 

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