Institute tells NI Affairs Committee that now is the time to pursue a lower corporation tax rate for NI

The Institute recently responded to the Northern Ireland (NI) Affairs Committee call for evidence ‘Economic growth in Northern Ireland: new and emerging sectors’ which closed earlier this month. As part of the UK Government’s growth mission, the Committee is examining plans to deliver economic growth in NI. The Institute’s view is that now is the time to pursue the implementation of a lower rate of corporation tax (CT) as a means of accelerating economic growth in the region. Our full response to this call for evidence will be published in due course in the Tax Representations section of our website.

The Institute’s response follows on from the launch in June of a refreshed campaign to pursue a lower rate of CT. A key part of this is the Institute’s position paper ‘Enhancing Our Competitiveness’, which sets out how Northern Ireland’s economy is at a crucial inflection point. In the increasingly competitive global race to attract foreign direct investment (FDI), NI cannot rely solely on the benefits of dual-market access to attract inward investment. The region needs to broaden its FDI proposition to be competitive; a lower rate of CT would be a vital tool in helping to achieve this.