Legislation that should allow Corporation Tax powers to be devolved
to Stormont has been published. Corporation tax is levied on the profits made
by companies. The current rate paid by businesses in Northern Ireland is 21%,
which compares unfavourably with the 12.5% rate in the Republic of Ireland. The
Northern Ireland Executive wants to be able to match the tax rate in the
Republic. The new powers won't come into effect until 2017.
It is vital that our country has the
tools to build a fair and sustainable economy and it is important that power is
fairly balanced across the UK, with Wales having parity with the other
constituent parts. The Silk Commission recommended that Corporation Tax should be devolved
to Wales in the event of it being devolved to other parts of the UK.
The Westminster Con Dem coalition government plans to pass the law
before May's general election. All the
political parties in Wales agreed to this principle and Plaid Cymru has long
argued the case for this important lever to be made available to the Welsh
Government. The party, formally known as New Labour, has said that
it will not oppose the passage of the Bill.
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