Media statement Monday, August 16th, 2004

Better understanding of value from company tax cuts gratifying

The growing support for reducing the company tax rate is gratifying and a great step forward, says Alasdair Thompson, chief executive of the Employers & Manufacturers Association (Northern).

"The BRC Marketing & Social Research poll of 503 people just released found 59% in favour of dropping the company tax rate to 30%," Mr Thompson said.

"Only 28% said the present level should be retained.

"It seems most people understand that if a company can retain three per cent more of its profit for re-investment, then everyone will benefit, including government's tax collectors.

"The average citizen probably understands better than our politicians that a reduction in the company tax level reduces the amount of withholding tax paid on a company's profit without greatly affecting the total amount of tax collected on profit and dividends combined."

ENDS