Northern Ireland Assembly, Monday 25 June 2007
Mr B Wilson asked the Minister of Finance and Personnel what consideration he has given to how the short-term loss in revenue arising from a differential rate of corporation tax would be addressed. (AQO 173/07)
Mr B Wilson: As the Minister pointed out, a problem is that tax reduction results in a loss of revenue. When the overall Budget is considered, a reduction in corporation tax may not be the most effective way of running the economy. The fact thatNorthern Ireland has no tax varying powers has implications for the regional rate, and this must be taken into account when considering the issue of lowering corporation tax. Can the Minister say what might be the impact of the loss of revenue from freezing the industrial rates at 25%?