ICTU's call for an increase in corporation tax is misguided in terms of tax reform according to a business lobby group.
The Chambers of Commerce of Ireland (CCI) said today that while ICTU is right in calling for a debate on tax but it should focus on the value for money that the taxpayers receive and not on providing more funding for the public sector.
Mr John Dunne, chief executive of the CCI said that over the last 15 years the share of corporation tax to total tax revenue has increased from 4 per cent to 16 per cent which is above the international norm.
"Our present low corporation tax rate is a key underpinning of our prosperity in terms of foreign direct investment however much ICTU seeks to deny it," he continued.
Mr Dunne added "If we can reach agreement on how to improve value for money in the public service then the answer to ICTU's question will lie in broadening and re-balancing our tax base rather than gouging deeper into existing tax sources."
On a more conciliatory note, Mr Dunne said ICTU's recommendation to abolish all forms of property-related tax incentives merits "serious consideration" but then added that ICTU is "strangely reluctant to follow this analysis to its logical conclusion by acknowledging the need for a property based tax as part of a balanced and equitable tax system."