British Business Secretary Vince Cable has warned the coalition government against cutting corporation tax in Northern Ireland, saying that it is “an incredibly tricky issue” involving a “lot of problems”.
Cable insisted that there were other ways to help Northern Irelandâ„¢s business community, rather than the Å“emotional issue” of reducing the tax rate within one part of the UK.
The Business Secretaryâ„¢s warning comes during an interview on a television program, the Nolan show, when he explained there would be major difficulties in slashing the tax rate.
Cable, who is due to meet with local companies, was asked whether Northern Ireland deserved special treatment.
“That’s an incredibly tricky issue because it raises the whole issue about whether different parts of the UK should start competing on tax rates,” Cable replied.
“We have to be extremely careful about unleashing tax competition in the UK,” he added.
Supporters of tax reduction, however, argue that Northern Ireland is the only part of the UK, which has a land border to a country [Republic of Ireland] with a much lower rate.
This article originally appeared on: Press TV