In her response to the discussion on the Finance Bill and the Appropriation Bill in the Rajya Sabha, Sitharaman defends various tax-related moves made by the Modi 2.0 government
In the course of a four-hour debate on the Finance Bill 2019 and the Appropriation Bill in Rajya Sabha on Tuesday, Finance Minister Nirmala Sitharaman reiterated the Modi government’s promise to lower the corporate tax to 25 per cent for all of India Inc. “We have brought it [corporate tax]down in order that now 99.3 per cent industries are all covered by the 25 per cent rate and, therefore, hardly any is left behind,” she informed the Upper House, adding, “We shall cover them sooner”.
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On July 5, while presenting her maiden Union Budget, Sitharaman announced that companies with an annual turnover up to Rs 400 crore will now be taxed at the lower rate of 25 per cent as a step towards phased reduction in tax rates. Previously, the lower rate was only applicable to companies having annual turnover up to Rs 250 crore while the rest of India Inc incurred a 30 per cent tax rate.
“Reduction in corporate tax rate is done with an intention,” Sitharaman said in the Rajya Sabha, explaining the rationale behind the move. “A trajectory was given to us as to how we will bring the corporate tax from the high rate that it was, from 30 per cent down to 25 per cent. It was a commitment given in the first ever Budget in 2014. I had to honour it.”
Source: Business Today
