The Government shouldn’t make any more major changes to the tax system, the Confederation of British Industry (CBI) has warned.
Instead, the CBI argues, it should allow recent positive reforms on the headline corporation tax rate, the taxation of foreign profits and the introduction of the Patent Box to take effect.
‘Fostering a culture of certainty and stability’ is key says the CBI in its report Tax in a global economy: the way forward.
They are however calling for the Government to make several small changes, such as including introducing capital allowance for infrastructure investment, capping business rates at 2%, and reducing employers’ National Insurance Contributions.
Katja Hall, CBI Chief Policy Director, said: ‘The Government has taken action to make the UK’s tax regime more competitive and now needs to let the changes bed down and take effect. Constant chopping and changing of the rules risks scaring off business investors.’
Read the full report.