Exporters give Finance Bill guarded welcome
The Irish Exporters Association (IEA) today gave a guarded welcome to the Finance Bill 2008.
“Relaxation of taxation on foreign dividends and the adjustments on the closed company surcharge provisions will make Ireland a more attractive location for foreign investors,” said chief executive John Whelan.
“The changes will be particularly useful to both foreign corporations and Irish business groups who wish to locate their holding company in Ireland.”
The IEA pointed out that Ireland has become uncompetitive in the international marketplace for holding companies.
The organisation is disappointed with the introduction by Minister Cowen of a new excise tax on electricity however, to be effective from 1 October 2008.
“An added tax on electricity supply to business is completely unacceptable,” said Whelan. “Irish exporters are under severe pressure due to unfavourable exchange rates, high wage costs and already have one of the highest electricity costs for industry in the EU.
“Introducing a new excise tax on electricity for business users only, as is the Minister’s stated intention, is incomprehensible”.
Mr Whelan stated the IEA will be taking up this matter vigorously with Minister Cowen and his officials to try to have the situation reviewed and deferred.
