Dáil Éireann Debate, Tuesday - 15 June 2021
115. Deputy Thomas Pringle asked the Minister for Finance the examinations his Department is undertaking regarding the proposal by the International Monetary Fund of a solidarity tax on those companies which accumulated wealth during the Covid-19 pandemic; and if he will make a statement on the matter. [20151/21]
View answerI am aware that the International Monetary Fund, in its bi-annual Fiscal Monitor released on 7 April 2021, suggested that countries could consider a temporary Solidarity Tax on high earners and businesses that have prospered during the pandemic.
While I understand why some may feel the introduction of such a measure is justified, I would urge caution in calling for the adoption of such a measure. It is important to acknowledge the role played by innovative sectors of the economy. The growing digitalisation of business in recent years has allowed many parts of the economy to continue to function while others were forced to close. This has enabled home working and allowed trade in essential goods and services to continue.
Furthermore, the fact that sectors of the economy have continued to function has allowed Governments to extend supports to other sectors of the economy who have fared less well particularly in areas such as hospitality and retail. Most importantly, we should acknowledge the remarkable work of the pharmaceutical sector in rapidly developing vaccines which I believe will be key to allow us to return to our normal lives as quickly as possible.
Countries will need to repair public finances once we have emerged from the pandemic. This will require us to be open to ideas and Ireland will give careful consideration to any proposals which may be helpful. However, I am of the opinion that innovation needs to be encouraged, and I remain to be convinced on taxes which target specific innovative sectors.
