Mary Coughlan
Ceist:87 Miss Coughlan asked the Minister for Finance the consideration, if any, that will be given to classifying quarrying as a manufacturing industry; and if he will make a statement on the matter. [5111/96]
Written Answers. - Classification of Quarrying.
The 10 per cent corporation tax rate applies to income arising from the manufacture of goods in the State. The question of whether the processes carried out by a company constitute manufacturing activity, and so entitle the company to the 10 per cent rate, depends on the facts to be determined in each case. I am advised by the Revenue Commissioners that certain activities carried on in the quarry industry already qualify for manufacturing relief on this basis.
Any amendment of the legislation to specifically extend the 10 per cent rate to all quarrying activities would constitute a State aid which would require prior EU Commission approval. It is unlikely that such approval would be forthcoming at this time.
The Deputy will be aware that in my recent budget I anounced a significant improvement in the taxation of all companies which are currently taxable at the 38 per cent corporation tax rate. From 1 April next, a new reduced rate of corporation tax of 30 per cent will apply to the first £50,000 of a company's taxable income in an accounting year. This move will be of benefit to all non-manufacturing companies, including those engaged in quarrying.