Dáil Éireann Debate, Tuesday - 17 May 2016
189. Deputy Tony McLoughlin asked the Minister for Finance his views on the proposed Atlantic economic corridor; if he will introduce new tax reduction measures for Sligo, Leitrim and other counties in the zone to attract more industry and commerce to the region; and if he will make a statement on the matter. [9656/16]
View answerThe Deputy will be aware that tax incentives, when designed to target certain geographical areas, could potentially raise State Aid issues. In terms of tax policy generally, Ireland's corporate tax rate of 12.5% on trading income is akin to a brand and is an important part of the Government's strategy of creating an enterprise friendly environment to attract jobs and investment to Ireland, countrywide. One of the main features of the rate is its simplicity and the fact that it applies to a broad base.
The Deputy may also wish to be aware of a number of incentives which while not of course restricted to the counties he mentions would be nonetheless applicable there. For instance, in Budget 2016 and Finance Act 2015, I introduced a revised CGT entrepreneur relief under which a reduced CGT rate of 20% applies to gains on the disposal of business assets up to a lifetime limit of €1m. The purpose of the relief is to improve the environment for entrepreneurs and business people setting up or carrying on productive business activities in the State. It is also intended to maintain the three-year tax relief for certain start-up companies until the end of 2018 , this is an important support for entrepreneurs and local job creation. Other relevant incentives include:
(i) the Start-Up Relief for Entrepreneurs (or SURE) which provides an income tax refund to individuals who invest capital in a new business,
(ii) the Start Your Own Business scheme which provides for relief from Income Tax for long term unemployed individuals who start a new business, and
(iii) the Employment Investment Incentive (EII) which is a tax relief incentive scheme that provides tax relief for investment in certain corporate trades.
The Deputy will have noted that the issues he raises have been identified in "A Programme for a Partnership Government", published last week, where measures suggested include further favourable CGT treatment for those starting new businesses. Any new or amended tax policies would be matters for consideration as part of the Budgetary process. On the wider issue of the Atlantic Economic Corridor, the Deputy may wish to address my colleague the Minister for Jobs, Enterprise and Innovation.
