FICCI Urges Government To Bring Down Corporate Tax

| January 9 , 2018 , 19:40 IST

The industrial body FICCI today urged the government to lower the corporate tax rate to 28 percent in the forthcoming budget as it would boost the industry and help tide over the problems created by the US tax reforms.

Finance Minister Arun Jaitley in his 2015-16 budget had promised to reduce the corporate tax to 25 percent over the next four years. 

"I am hoping that in this Budget, they will bring down the tax rate to 28 percent at least to give a confidence that they are on that path," FICCI President Rashesh Shah said.

He said that the reduced tax rates would also help the Indian industry in meeting the challenges emanating from tax cuts by the Trump administration in the US and its aftermath in other developing countries.

In December last year, Senate Republicans passed a sweeping overhaul of the US tax code.

The Senate approved the $1.5 trillion tax bill, which includes permanent tax breaks for the corporation and temporary tax cuts for individuals.

"Bringing the tax rate to 28 percent will be a good start," Shah said adding that in the absence of the rate cut, the corporate sector would start becoming unproductive.

The government is scheduled to come out with the budget for 2018-19 on February 1, which will also be the last regular Budget of the current government.

On the economic growth prospects, Shah said he expects the economy to grow by about 7.5 percent in the next fiscal.