Delegates reject 2.5% levy on profits

CORPORATION TAX:SINN FÉIN has rejected a call for a temporary 2.5 per cent levy on corporate profits to increase the corporation tax rate to 15 per cent.

At its ardfheis the party also rejected a motion calling on the executive to work towards an “efficient and rapid dropping of the euro currency”.

The party’s ardchomhairle had made clear in advance of the ardfheis its opposition to the motion calling for a 2.5 per cent levy. Finance spokesman Pearse Doherty said it would “increase the tax burden on many small and medium-sized companies who are struggling to survive”.

However, proposing the tax increase during a debate on the economy, Paul Galvin of Limerick city said 63 per cent of companies paid no corporation tax in 2010, and of those who did many paid just 4 per cent, according to data from US companies.

Sinn Féin was a “party of the left”, and imposing that levy could raise €850 million, said Mr Galvin.

Those corporations making “huge profits” should “make some modest contribution”, he said, noting a similar proposal by the Irish Congress of Trade Unions for a 2 per cent levy.

However, delegates voted against the motion, and also rejected another from Limerick City cumann on moving out of the euro. The proposal said an early end to unemployment and debt levels could only be brought about through “direct State management” and the first step “is control of our own currency”.

Calling for full fiscal powers for the Northern Ireland Assembly, South Armagh MP and MLA Conor Murphy said the amount of tax revenues collected from the North through VAT, income tax, customs and excise duties and all other taxes was never revealed but should be to assist the debate about the sustainability of an all-island economy.