Vol. 417 No. 2
81 Mr. Hogan asked the Minister for Finance if he will be considering any change in the 10 per cent manufacturing rate of tax; the duration of this particular rate for manufacturing companies in view of the reference made to this subject matter in the recent report of the Industrial Policy Review Group; and if he will make a statement on the matter.
Section 41 of the Finance Act, 1990, extended the duration of the 10 per cent rate of corporation tax for manufacturing to the year 2010. The section also defined the range of activities eligible for that rate.
In their recent report, the Industrial Policy Review Group made comments on the corporation tax regime and on certain drawbacks associated with the 10 per cent rate. However, the group confined their recommendations to saying that no indication should be given of any continuation of the 10 per cent corporation tax rate beyond 2010, and that the rate of activities to which it applies should not be extended.
Since the Government have now set up a task force, which will report to the Taoiseach and a committee of relevant Ministers, to follow up on the recommendations in the review group's report, it would not be appropriate to comment further at this juncture.
