Irish stance on EU tax rate harmony welcomed

A government minister in Ireland has said he will veto any attempt by the European commission (EC) to harmonise corporation tax across Europe.

Michael Martin, the Irish minister for enterprise, has said Ireland would not stand for any attempt by EC policymakers to tinker with the republic's corporation tax rate of 12.5 per cent, which is below the EU-average.

The EC recently announced that it was looking at ways to harmonise the business tax system across all 27 member states.

Mr Martin is one of several ministers who have insisted that Ireland will block any proposal put forward by the EC.

Ireland's Charlie McCreevy, who is also the EC internal market commissioner, said that Ireland should retain the ability to levy 12.5 per cent as it ensures that the country has a competitive edge.

"I am the leading light in the commission against tax harmonisation," he told Cork Business Association annual president's lunch.

The president of the European Commission Jose Manuel Barroso has himself said Ireland will not be forced into accepting a harmonised tax regime.