asked the Minister for Finance if he will extend to non-export orientated industry and service industries the tax concessions currently available to export orientated industry; and, if not, why.
Written Answers. - Industrial Tax Concessions.
302.
Under the export sales relief provisions companies which export goods manufactured by them within the State are entitled to relief from corporation tax on their income from such exports. Profits arising from certain trading operations carried on wholly or partly within Shannon Airport are also relieved from corporation tax.
Both of these reliefs will be superseded as and from 1 January 1981 by a new incentive scheme which will apply to manufacturing industry and will provide for an effective low rate of corporation tax. This scheme will apply to income derived by companies from the manufacture by them of goods in the State whether that income arises from domestic or export sales.
Export sales relief did not apply to the services sector generally and it is not considered that it would be appropriate, or acceptable in terms of revenue foregone, to bring that sector within the scope of the replacement scheme. However, as already announced, it is intended, subject to the approval of the EEC Commission, to extend the new scheme by way of an appropriate provision in next year's Finance Bill to certain non-manufacturing services based at Shannon Airport which are covered by the existing Shannon tax relief.