Corporates seek lower tax rate at pre-Budget meet

Industry bodies have sought reduction in the corporation tax rate as well as incentives for attracting fresh investments at the pre-Budget meeting convened by Finance Minister Arun Jaitley here on Wednesday.

They have suggested lowering the corporation tax to 1825 per cent, from up to 30 per cent at present. Exporters, who are grappling with blockage of working capital, sought exemption from tax on export income, lower rates on forex earnings, and faster clearance of the goods and services tax (GST) refunds.

Jaitley is likely to present Union Budget 2018-19 on February 1. It will be the first fullfiscal Budget after the implementation of the GST on July 1 this year.

It is also likely to be the last one of the current government before elections in 2019, when the vote- on-account will be presented. Industry bodies also sought government support for innovation, employment generation through investment in micro, small and medium enterprises, and start-ups, specific incentives for new investments and highlighted the need to establish an export zone having manufacturing facilities but without any taxes or regulations.

“JAITLEY HAD PROMISED A 25% CORPORATION TAX RATE CUT. WE EXPECT HE WILL FULFIL HIS PROMISE IN THIS BUDGET” PANKAJ PATEL President, Ficci

“ACROSS THE WORLD, PEOPLE ARE REDUCING CORPORATE TAXES AND INDIA IS AMONG THE HIGHEST” SHOBHANA KAMINENI President, CII

“DIVIDEND DISTRIBUTION TAX, WHICH IS AROUND 20%, SHOULD ALSO BE LESSER” SANDEEP JAJODIA President, Assocham