Irish consensus on 12.5% corporate tax shifts after G7 global deal

Irish consensus on 12.5% corporate tax shifts after G7 global deal

Ireland's second biggest opposition party has backed a "small increase“ in the country's corporate tax rate, in a sign that Dublin's longstanding political consensus on multinationals is cracking after the G7 agreed a plan for global taxation reform.

Ireland's 12.5 per cent headline tax rate has been central to its success in attracting multinational companies for many years. But Dublin now faces a significant challenge after the G7 group of leading nations this weekend endorsed a 15 per cent global minimum levy.

Ged Nash, finance spokesman for Ireland's Labour party, told the Financial Times he was calling for a "national conversation“ on a potential increase.

"A small increase [in Ireland's corporate tax rate] is something I believe we can live with,“ Nash said. He added that while "we are not even close to that“ because the OECD has not agreed a global deal yet "the first thing we need to do is start building a consensus here in Ireland politically“.

Nash said he would raise the issue with Irish finance minister Paschal Donohoe in parliament next week.

"The minister needs to front up with parliament on what the options for Ireland are,“ Nash said. He added that the opposition should be given enough information to