FF `will reduce' business tax

FIANNA Fail has confirmed that it is proposing to reduce the 36 per cent tax rate for business to 10 per cent by 2010.

FIANNA Fail has confirmed that it is proposing to reduce the 36 per cent tax rate for business to 10 per cent by 2010.

The proposal - first reported in The Irish Times last Friday - is part of a corporate tax package announced yesterday by the party's deputy leader and spokeswoman on enterprise and employment, Ms Mary O'Rourke.

As well as the single business tax rate of to per cent by 2010, the Fianna Fail election manifesto will propose that as a first step in this tax reduction process, a 25 per cent tax rate on the first £100,000 of company profits will be introduced, with a 30 per cent tax rate levied on the balance of company profits up to £250,000.

Currently, there is a 28 per cent corporation tax rate on the first £50,000 of profits, with the balance taxed at 36 per cent.