Vol. 502 No. 3
285 Mrs. T. Ahearn asked the Minister for Finance if the increase in the rate of corporate tax from 10 to 25 per cent to the working of minerals in section 66 of the Finance Bill, 1999, applies to the working of limestone quarries; and if he will make a statement on the matter. [7981/99]
Section 71 of the Finance Bill, 1999, as passed by Dáil Éireann, provides that the standard rate of corporation tax is to be reduced on a phased basis to 12.5 per cent. The standard rate is to be 28 per cent for the year 1999, 24 per cent for the year 2000, 20 per cent for the year 2001, 16 per cent for the year 2002 and 12.5 per cent for the year 2003 and subsequent years.
Section 73 of the Bill provides for the imposition, with effect from the year 2000, of a higher 25 per cent rate of corporation tax on certain profits of companies. In line with the budget announcement, the 25 per cent rate is to apply, inter alia, to income from the exploitation of oil, gas and mineral resources.. However, an amendment introduced at Committee Stage of the Bill will ensure that the 25 per cent rate will not apply to any manufacturing activity involving the use or conversion of minerals and stone substances. Consequently, those mining operations, including relevant limestone quarries, which currently qualify as manufacturing for the purposes of the 10 per cent rate of corporation tax will continue to do so and, when entitlement to manufacturing relief expires, will qualify for the 12.5 per cent rate of corporation tax.
