Over-dependence on a handful of multinational companies’ corporation tax leaves the State exposed to huge risk, according to Social Democrats finance spokesperson Cian O’Callaghan.
Deputy O’Callaghan said:
“Last year, the Irish Fiscal Advisory Council warned that overreliance on unstable corporate tax revenues is reckless.
“Today, IFAC has estimated that almost half of the corporation tax collected by the State is paid by three multinationals – in 2024, these large companies paid around €13 billion or 46% of the total take.
“The government’s latest budget eroded its tax take by €1.3 billion – placing even greater reliance on corporation taxes
“The government continues to ignore the experts on this issue as it narrows our tax base even further, leaving us ever more exposed and over-reliant on volatile corporation taxes.
“This irresponsible behaviour will limit our ability to withstand future challenges and any international economic headwinds that may be coming.
“It should also be remembered that there are domestic challenges we need to grapple with – an aging population, threadbare public services and enormous holes in our climate action plan.
“Instead of disproportionately relying on corporation taxes, the government should be doing much more to invest in our indigenous industries. Those small and medium businesses are the lifeblood of our towns and cities.
“This Government has its head in the sand and is gambling with our economic future.
“It’s time they wake up and take some responsibility.”
Thursday, 19th February