Wednesday 26 October 2016

IDA chief's warning as Kenny's leadership under fire in FG

Donal O'Donovan and Niall O'Connor

Published 07/07/2016 | 02:30

IDA chief Martin Shanahan Photo: Mark Condren
IDA chief Martin Shanahan Photo: Mark Condren

IDA chief Martin Shanahan has warned Ireland now has to cut personal tax rates as the Brexit battle for jobs intensifies.

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In the wake of Britain's vote to leave the EU, France is making a dramatic bid to lure banking jobs away from London.

France is promising a sweetheart personal tax regime for expatriate workers and returned emigres.

Within hours of the British vote result being known, the IDA also moved to contact new and existing investors and pitch Ireland as a European base.

However, Mr Shanahan says high personal taxes here, including the low level at which the top rate of income tax kicks in, are being raised as a concern by prospective investors.

"It is clearly an issue that comes up, I'm on the record as saying I believe we need to ensure personal tax rates are competitive," he told the Irish Independent.

And another threat to our competitiveness emerged as the European Parliament vowed to step up its campaign for tax harmonisation inside the EU - despite Irish opposition and Britain's promise to slash its key business tax.

In the fallout from Brexit, Taoiseach Enda Kenny's continued leadership of Fine Gael has been raised by party TDs.

Mr Kenny's handling of Brexit was criticised by backbenchers at a stormy party meeting.

Irish Independent

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