asked the Minister for Finance if he will state, in expansion of his remarks in the Dáil on 22nd June, 1971, if the increases in company taxation announced in the autumn Budget have to date been effective in helping to avoid increases in prices; if so, in relation to what commodities they have been effective; and if he will indicate roughly the extent to which the rise in the consumer price index has been affected.
Ceisteanna—Questions. Oral Answers. - Company Taxation.
14.
The increase in company taxation introduced last autumn was one of a number of measures adopted by the Government to deal with the serious inflationary situation. All the measures must be considered together and it would be impossible to isolate and quantify the effect of a particular measure.
I might mention that the consumer price index for mid-May, 1971 has shown a down-turn in the annual rate of increase in prices as compared with that shown in the two previous quarters.
Is it not true that these increases in company taxation have resulted in increases in prices by reason of the fact that the companies had to recoup the losses incurred by way of extra taxation?
That is not so at all. As I have indicated, it is clear that this was only one part of a number of measures but if those measures had not been taken the consequences for the companies concerned would have been so serious that there would have been very substantial increases in the prices of the commodities of those companies which have been able to survive.