• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Corporate tax could be lowered as GST revenue collections increase: FICCI

By PTI
|

New Delhi, Feb 5: The government has promised to lower corporate tax rate to 25 per cent for all companies once Goods and Services Tax (GST) mop-up improves, Ficci President Sandip Somany said on Tuesday.

Speaking to reporters after meeting Finance Minister Arun Jaitley, Somany said the discussions revolved around a wide range of issues, including taxation, job creation and boosting industrial output.

Inion Finance Minister Arun Jaitley met Ficci President Sandip Somany today

"He (Jaitley) has promised that as the revenue collections from GST go up over a period of time, he will rationalise the taxes for the rest of the corporate sector over the next few years," Somany said.

In 2015-16 budget, the government had announced that the corporate tax rate would be gradually lowered to 25 per cent from 30 per cent over the next four years and exemptions available to companies would be phased out. In the budget 2017, the government had reduced corporate tax rate to 25 per cent for companies whose turnover was less than Rs 50 crore in financial year 2015-16. This benefitted 96 per cent of the total companies filing tax returns.

[GST Council meeting: Tax cut likely on residential properties]

The government in the next budget of 2018-19 extended the reduced tax rate of 25 per cent to companies with turnover of up to Rs 250 crore, a move which benefited the micro, small and medium enterprises. After this, out of about 7 lakh companies filing returns, about 7,000 companies which file returns of income and whose turnover is above Rs 250 crores remains in 30 per cent slab.

With regard to US decision to withdraw duty benefits on Indian products under the Generalized System of Preferences (GSP) programme, Somany said it will make Indian industry less competitive.

[GST on under-construction housing properties cut to 5%, affordable houses to 1%]

"I'm sure government will take appropriate action and there will be dialogue between the two governments to make sure that this is not withdrawn in case of India,” Somany added. US President Donald Trump has said he intends to end the preferential trade status granted to India and Turkey, asserting that New Delhi has failed to assure America of "equitable and reasonable" access to its markets, an announcement that could be seen as a major setback to bilateral trade ties.

PTI

For Daily Alerts

For Breaking News from Oneindia
Get instant news updates throughout the day.

Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more