PDs pledge to maintain low corporation tax

The Progressive Democrats today pledged to maintain low levels of corporation tax if they are returned to government at the General…

The Progressive Democrats today pledged to maintain low levels of corporation tax if they are returned to government at the General Election.

Party leader Ms Mary Harney described the current tax rate as Ireland's "golden goose", which has paid for education spending and other public services in recent years.

Ms Harney said: "Low corporation tax has delivered more tax and more jobs."

Only the PDs would legislate to ensure corporation tax remains low if the party is returned to power on May 17th, she said.

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Ms Harney said corporation tax in the Republic represented 3.7 per cent of gross domestic product, delivering €4.6 billion to the economy each year.

"This has happened because Ireland is now an enterprise society, a low tax economy and a jobs-friendly place to do business. And this delivers record revenue for social spending," she said.

"We have promised international investors and domestic business that we will bring in the 12.5 per cent rate from the start of 2003. Now is not the time to undermine that commitment, as some on the left do.

"The Progressive Democrats see no circumstances at all where an increase in the corporation tax rate would be justifiable. We are the only party therefore, who will legislate to make the 12.5% rate permanent and safeguard it from increases."

She added: "Low tax has delivered jobs and social justice. Raising business tax will damage both. We must stick to our winning formula."

PA