As promised, this week’s column looks at the importance of tax rates in the overall scheme of tax policy in any country. I start by saying that lower rates of tax do matter – they allow the taxpayer to retain a higher level of the income earned which they can use for re-investment or higher dividend payments to shareholders. They can also make a country more competitive since prospective investors pay some attention to countries’ nominal tax rates in their investment equation. Hence, the decision to reduce the corporate tax rates by five percentage points would be welcomed both by companies and individuals,
