- CII says 18% corporate tax along with zero exemptions could be revenue neutral
- Industry body suggests that the govt should take steps to spur investment and growth, which slowed to five-year low of 6.8% in 2018-19
Industry body CII has made a case for bringing down the corporate tax rate to 18% along with elimination of all exemptions saying it will not result in any loss to the exchequer.
The Modi 1.0 government had proposed to bring down the corporate tax rate from 30% to 25% gradually. The government has already reduced it to 25% for companies having turnover of less than ₹250 crore.
“We are supporting a reduction in taxes along with reduction in exemptions and a very simplified tax code.
“Our numbers show that 18% corporate tax along with zero exemptions could be revenue neutral. We would prefer to go in that kind of direction,” CII President Vikram Kirloskar told PTI in an interview.
Finance Minister Nirmala Sitharaman, who is holding pre-Budget consultations with different stakeholders, including industry, will be presenting the first Budget of Modi 2.0 government on July 5.
Source: Livemint
