Centre aims to reduce corporate tax from 30 per cent to 25 per cent
Finance Minister Arun Jaitley (Photo: PTI)
New Delhi: In tune with finance minister Arun Jaitley’s Budget announcement on phasing out sops for reducing corporate tax, the government has proposed to phase out profit and investment linked deductions as part of the roadmap to reduce corporate tax from 30 per cent to 25 per cent over the next four years.
According to the roadmap unveiled by the government provisions having a sunset date will not be modified to advance the sunset date. Similarly the sunset dates provided in the Act will not be extended.
In case of tax incentives with no terminal date, a sunset date of March 31, 2017 will be provided either for commencement of the activity or for claim of benefit depending upon the structure of the relevant provisions of the act. There will be no weighted deduction with effect from April 1, 2017.
However, industry is demanding that the corporate tax be brought down to 20 per cent as effective rate after all sops is 22 per cent. The government believes that a myriad of concessions has made tax compliance and administration cumbersome.
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( Source : deccan chronicle )
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