Tax Cuts in N.Ireland Create 58 000 Jobs

September 19, 2012 Taxation in Ireland

job creationBELFAST – In an effort to boost its economic growth Northern Ireland is looking at increase employment and encourage job creation by cutting corporate taxes.

While answering questions from representatives of the media on September 18th on job losses in Northern Ireland following several large companies abandoning their production in favor of establishing new production facilities in China, the Employment and Learning Minister of Northern Ireland Stephen Farry said that the country could double the number of new jobs created over the next two decades if the corporate income tax rate is dropped to 12.5 percent.

Under present conditions Northern Ireland is forecast to see an additional 57 000 new jobs created over the next twenty years, but, according to a new report Preparing For A Lower Corporation Tax Environment, which was commissioned by the Department of Employment and Learning and was prepared by the consultancy firm Oxford Economics, a further 58 000 would be created if the tax rate could be dropped to the same rate as in the Republic of Ireland.

The Minister said that many of the new jobs created following the tax cut would involve highly skilled employees, and approximately 2 000 of the jobs would be in the advanced manufacturing sectors.

Tax cuts have been a heated topic in Northern Ireland, with strong demand from the public for the UK government to devolve the power for Northern Ireland to set its own tax rates.

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