Corporate India will have to bear burden of taxes: Chidambaram
New Delhi, Mar 4 (UNI) The corporate sector will continue to pay the bulk of the tax revenue as taxation of farm incomes is a state subject and personal income tax constitutes a small proportion of gross tax revenues, Finance Minister P Chidambaram said here today.
Assuring that he would do everything to help the corporate sector attain 12 per cent growth and maximise profit, he said ''All I can do is to assure you that we will create an environment where your businesses prosper and you make profits. I will address all issues standing between you and a 12 per cent growth in the manufacturing sector.'' The statement was made by Mr Chidambaram while inaugurating the National Conference on the Union Budget 2006-07, organized by FICCI.
The Finance Minister said, the effective tax rate for the corporate sector worked out to 21 to 22 per cent and the bulk of the corporates paid tax at a lower rate as MAT companies.
He said, the Budget did not have any proposal for new taxes and there was no change in the structure of taxes. ''All that has been done is tweaking a few to remove the clutter that surrounds the tax structure.'' Responding to the concerns expressed by FICCI President, Saroj Kumar Poddar, Mr Chidambaram said, the MAT rate had been tweaked but the rate charged was still one-third of the tax paid by a normal company. ''This is certainly not inequitous as MAT is only an advance tax--an advance payment on the liability in the future.'' MORE UNI ARB SD RK1857