Inaction on Devolution Will Cost N.Ireland

April 5, 2017 Taxation in UK

Tax in Norther IrelandBELFAST – Norther Ireland may be losing its greatest opportunity to attract investors, according to some economic experts.

Invest Northern Ireland, a regional development agency promoting investment into Northern Ireland, has dropped its suggestion that the country may gain devolved powers to set its own corporate tax rate by April 2018.

The group had previously attempted to entice investors into Ireland with the promise that in April 2018 the country would reduce its corporate tax rate to 12.5 percent.

It has now been revealed that the Department of Finance has admitted that there is a chance that the deadline for devolution of the tax powers “may slip”.

The cause of the delay has been attributed to a political stalemate which has led to a lack of agreement between political parties about the practicalities of the devolution of corporate tax powers.

The possibility that the tax rate won’t be dropped may lead to the country “becoming toxic to investors” according to the economist Andrew Webb.

Backing the negative opinion, Ann McGregor, chief executive of the Northern Ireland Chamber of Commerce and industry, has said that the loss of the lowered tax rate will result in the loss of the best opportunity for the region to attract inward investors.