A Fine Gael TD has described the proposed EU Common Consolidated Corporate Tax Base as an effective attack on Ireland's corporate tax rate.

Olivia Mitchell told an interim Dáil Committee that we should make a political statement to that effect to the European Union. She said an impact assessment showed that Ireland would suffer more that any other country.

An official from the Department of Finance told the interim all-party Dáil committee that the proposed CCCTB could be many years away.

Gary Tobin said the proposal was very much in the early stages and it was very difficult to foresee what proposal would eventually emerge. He acknowledged that Ireland would be a net loser from the proposal as it is now.

Mr Tobin said the Government remained sceptical of the proposal but was willing to engage on the issue.

The CCCTB plans to streamline the system for calculating the tax base of businesses in the EU, but does not alter the member states' individual corporate tax rates.

Fine Gael's Kieran O'Donnell said the proposal as it stands means the effective corporate tax rate for Ireland would be changed and would take away the flexibility of the Government in aspects of the taxation system.

Labour's Alex White asked what problem was being addressed by the proposed taxation system and wondered if it was a 'solution in search of a problem.'

Fine Gael's Denis Naughten said the proposal discriminated against an economy based on services. Labour's Joe Costello said the CCCTB suited larger countries and was not tax neutral. As such, he said, this breached the principle of subsidiarity.