Government stands on its promise of lowering the corporate tax as GST dispatch gains its numbers
The government of India has assured the corporate companies that tax rates will be reduced to 25% once GST mop up improves. On Tuesday Sandip Somay the president of Ficci spoke to Finance minister Arun Jately. When talking to reporters, Somay said the discussion revolved around a wide range of issues such as tax relaxation, job creation, and boosting industrial output.
In the year 2015-16, the government declared that corporate tax rates would be cut down from 30% to 25% in the next four years and the remaining exceptions will be phased out.
The budget session of 2017, it was decided that companies whose turnover was less than 50 crores in the financial year of 2015-19 will have to pay a 25% reduced tax rate. As a result, more than 95% of the companies were able to take tax return benefits.
The Indian government decided to extend the range of corporate tax reduction of 25% from companies having 50 crore turnover to 250 crores in the budget of 2018-19. Thus, benefitting 7 lakh small and medium enterprise companies. Now only seven thousand companies remain which are on 30% slab.
During the interview, Somany said after the US decision of withdrawing duty benefits on Indian manufactured products under the programme of generalized system preference. The national market will have less competition.
"I'm sure government will take appropriate action, and there will be a discussion between the two governments to make sure that this is not withdrawn in case of India," Somany added.