Consultation begins on devolving tax powers to Northern Ireland
A public consultation on the possible devolution of some taxation powers to Stormont has been launched.
Finance Minister Conor Murphy said it was time for a “mature discussion” on the potential for greater local control over tax.
While the administration secured the ability to set its own corporation tax rate in 2015, it has never used it to deviate from the UK-wide levy on business profits.
A report earlier this year recommended that Stormont should be given partial control over rates and bands of income tax in Northern Ireland.
The Independent Fiscal Commission for Northern Ireland also said there should be devolution of stamp duty land tax, landfill tax and air passenger duty to the devolved legislature.
Mr Murphy encouraged the public to give their views in the consultation, which will run until November 29.
He said: “The Executive is responsible for less than £1 in every £20 of tax revenue raised locally.
“As a result the Executive is hugely dependent on a block grant which is being squeezed by Westminster, threatening the sustainability of our public services.
“The Scottish and Welsh governments have more control over their tax affairs and it is time for a mature discussion on the potential benefits of greater control over taxation here.
“This discussion is all the more vital given that the Westminster Government is embarking on a course of massive tax breaks for the wealthy which will reduce funding for public services and create more inequality.
“The Fiscal Commission’s report has started a conversation around what additional fiscal powers could be provided to an Executive to allow locally elected ministers to set taxes in line with local needs and circumstances.
“While it will be for an incoming finance minister to bring recommendations on this matter to a restored Executive, it is important that the public has its say.
“I encourage individuals, businesses and civic society to contribute to the consultation.”
The consultation is available at finance-ni.gov.uk/consultations/devolution-fiscal-powers