Business World

Sunday 22 October 2017

Pfizer calls for tax on US imports and drop in corporation tax

Pfizer employs over 3,000 people in Cork
Pfizer employs over 3,000 people in Cork

Sean Duffy

Drug maker Pfizer is one of 25 major companies that has signed up to an alliance calling for a tax on all imports into the United States.

The 'American Made Coalition' want a 20pc tax to be imposed on all imports into the country and are campaigning for the US corporation tax to be reduced from 35pc down to 20pc.

Pfizer currently has major manufacturing operations in  Ringaskiddy and Little Island in Cork, making Pfizer one of the largest employers in the south west. The company also has three facilities in Dublin and one in Kildare. In total, Pfizer has 3,300 employees working in Ireland.

In a statement to the Irish Independent, Pfizer said:

"We look forward to working with the new administration to advance patient care and access to innovative medicines. Ireland has long been a strategic location for Pfizer. There is intense global competition for life science investment and the countries that will succeed are those that closely link creating a positive environment for innovation to thrive with rewarding innovation."

The move by the American Made Coalition could also have major implications for Ireland’s prospects of attracting Foreign Direct Investment. The proposed tax reform would severely lessen Ireland’s tax advantage over the US, albeit Ireland's rate would still be lower at 12.5pc.

Other companies that have signed up to the coalition include airplane manufacturer Boeing, General Electric and tech company Oracle.

The American Made Coalition launch underscored a growing division in corporate America over the House Republican proposal that would cut corporate income tax to 20 pc from 35pct, exclude export revenue from taxable income and impose the 20pc tax on imports.

President Donald Trump has sent mixed signals about border taxes and the House proposal could face difficulties in the US Senate where some Republicans question whether it would unduly raise prices for US consumers and businesses.

Additional reporting by Reuters

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