×
E-PAPER ▾

E-paper

Business

India Inc pushes lower corporate tax in pre-Budget meet with FM

| | New Delhi

Corporate India on Wednesday sought lower tax and more incentives for investments while exporters called for quicker GST refunds at a meeting with Finance Minister Arun Jaitley in the run-up to the last full-year Budget of the NDA government before 2019 general elections.

The industry bodies suggested lowering the corporate tax to 18-25 per cent, from up to 30 per cent at present. The exporters, who are grappling with blockage of working capital, pressed for exemption from tax on export income or lower levies on forex earnings and faster clearance of GST refunds.

“The Finance Minister has promised 25 per cent corporate tax rate long back and we expect that the Finance Minister will fulfil his promise in this Budget,” Ficci President Pankaj Patel said.

The industry body also sought support for innovation, employment generation through investment in the MSME and startup sector and specific incentives for new investments, highlighting the need to establish an export zone with manufacturing facilities but without any taxes or regulations.

“We have asked to reduce the corporate taxes. Across the world, people are reducing corporate taxes and India is among the highest. We do need to create more demand and capacities for private investment and if you see today, GST has increased the tax rates,” CII President Shobana Kamineni said.

CII suggested that the road map for corporate tax rate for India should include reducing it to 18 per cent (all inclusive) at the earliest and withdrawal of surcharges and cesses.

“The implementation (of GST) and refund delays are a cause of concern, so we have suggested that if they can give us the IGST refund also, along with the drawback. In the US, there is a differential tax rate for export earnings, so we have sought a lower rate of tax on export earnings than the normal corporate rates,” EEPC India Working Committee Member PK Shah said.

According to Shah, refunds of exporters to the tune of at least Rs 60,000-70,000 crore are stuck post GST rollout in July.

“We have asked the Finance Minister to take the corporate tax to 25 per cent comparing with developed and industrialised nations. This would help in investment and which, in turn, would increase employment opportunities. Dividend distribution tax, which is around 20 per cent, should also be lesser,” said Assocham President Sandeep Jajodia.

“We would urge the government to provide fiscal support to units that provide additional employment in the export sector. Such a scheme will also help the workers move from informal employment to formal employment, which is a priority of the government. Incentives may be provided based on twin criteria of growth in exports and growth in workers so that while export is increased, the employment intensive units also get a boost,” exporters’ body FIEO said. 

 
 
 
 
 

TOP STORIES

Sunday Edition

View All

N Korea blames US for tensions in rare UN talks

10 Dec 2017 | AFP | Seoul

North Korea blamed US "nuclear blackmail" for soaring tensions over its weapons programme in rare meetings with a senior UN official, but agreed to regular communication with the organisation, state media said today. Jeffrey Feltman arrived in Beijing today after wrapping up a five-day visit to Pyongyang aimed at defusing the crisis, just a week after North Korea said it test-fired a new ballistic missile capable of reaching the United States...

Read More

STATE EDITIONS

View All

CM’s Medhavi Yojana for Class XII students getting 70 per cent marks

11 Dec 2017 | Staff Reporter | Bhopal

The students securing 70 per cent marks in the Class XII examination will also get the benefit of the Chief Minister's Medhavi Vidyarthi Protsahan Yojna from next year. The scheme will cover all courses offered in government colleges...

Read More

Page generated in 3.4637 seconds.