The 12.5% Rate of Corporation Tax remains unchanged under the Joint Programme as outlined at the end of November. The Joint Programme posits 2015 rather than the 2014 date in the Four Year Plan as the target date for bringing the Budget Deficit to within 3% of GDP. It is understood from the Department of Finance that the timing of the tax changes as announced in the Four Year Plan remain unaffected despite this extended date.

A statement issued by the Department of Finance lists, among other things, the fiscal measures in the Programme, which broadly coincide with the features of the Four Year Plan. These are:

• Lowering of personal income tax bands and credits or equivalent measures
• A reduction in pension tax relief and pension related deductions
• A reduction in general tax expenditures
• Excise and other tax increases
• Site Valuation Tax to fund local services
• A reform of capital gains tax and acquisitions tax
• An increase in the carbon tax

The list, which also contains expenditure and regulatory items, is available at http://www.finance.gov.ie/viewdoc.asp?DocID=6600.

No matter what might be thought of the other tax measures as announced, it is vitally important that the 12.5% rate of Corporation Tax has remained unchanged. The rate is an essential component of our ability to attract investment from abroad, now needed more than ever for its contribution to employment and economic growth.