The Irish Stock Exchange welcomes yesterday’s report by the Commission on Taxation and its proposal to reduce the 1% stamp duty on all transactions in Irish shares to zero.
The Exchange has consistently advocated the abolition of stamp duty on share transactions. Irish stamp duty on share transactions is the highest in the Western world and an anomaly in global competitive markets.
Stamp duty has real and negative implications for investors and pension funds and is a significant barrier to investment in Irish companies. Reducing this tax to zero will:- enable Irish companies to compete for foreign investment on the same basis as their international peers;
- eliminate an uncompetitive cost of investing in Irish enterprise, for individuals, pension funds and other investors, domestic and international; and
- remove a significant disincentive for foreign holding companies incorporating in Ireland, enabling Ireland to compete on a level playing field with other countries as a location for inward investment.