By Claire West
Because of its attractive tax, regulatory and legal regime Ireland has an unfair advantage in attracting inward investment and the European Central Bank and IMF might make it a ‘bail-out’ condition that corporation tax is increased.
Irish ministers, however, have said that raising the rate was "certainly not up for negotiation."
The business group, Chambers Ireland has also said that maintaining the 12.5% corporation tax rate will be a crucial element in sustaining Ireland's return to growth and must be non-negotiable in any agreement.
Seán Murphy, Chambers Ireland Deputy Chief Executive said, "The 12.5% corporation tax rate is Ireland's unique selling point and a vital draw for Foreign Direct Investment (FDI) which generates more jobs per head of population in Ireland than in any other country and support some 240,000 Irish jobs. They account for 50% of corporation tax, 70% of national exports, and a €19bn spend in the economy, including €7bn in payroll."
"The maintenance of our corporation tax rate will therefore be vital for generating the revenues need to pay down the debt burden that Ireland faces in the future," Murphy concluded.