Any increase in Ireland's corporation tax rate as part of a financial bailout could hurt the country's rapidly expanding pharmaceutical industry, currently its largest contributor to corporation tax.
Ireland is in talks with the European Union and the International Monetary Fund regarding a potential rescue package to stabilise the Irish banking system and protect the euro. So far Irish leaders have ruled out any increase in its corporation tax rate as part of the deal. But media reports have suggested that member states may try to force an increase to guarantee a return on their investment.
Ireland's corporation tax rate of 12.5 per cent is amongst the lowest in Europe. A spokesperson for the Irish Pharmaceutical Healthcare Association (IPHA) says: 'Corporation tax is very important to the industry. It is one of the primary reasons why the industries came to Ireland and continue to invest in the Irish economy.' Indeed, 13 of the largest 15 pharma companies, including Bayer, Pfizer, GlaxoSmithKline, AstraZeneca and Roche have at least one manufacturing site there. This has helped Ireland become the second largest net exporter of medicines in the world.
Monday, November 22, 2010
Irish drug industry fears bailout tax terms