Industry body Ficci on Friday sought reduction in corporate tax and abolition of Minimum Alternate Tax (MAT) to spur investment as the BJP-led NDA Government gears up for its second term.
The Government had presented an Interim Budget for 2019-20 in February. A full Budget is likely to be presented in July.
“The key recommendation was that the focus of the government should be to spur domestic investment and in order to retain India’s competitiveness globally, corporate tax rate cut should be considered,” Ficci said after its delegation met Revenue Secretary Ajay Bhushan Pandey as part of the pre-budget discussion.
In the 2015-16 budget, the government had announced that the corporate tax rate would be gradually lowered to 25 per cent from 30 per cent over the next four years and exemptions available to companies would be phased out.
In the subsequent years, the tax rate was reduced to 25 per cent for companies with a turnover of up to Rs 250 crore.
The non-availability of utilising the scrips towards the payment of IGST has led to financial burden on the importers.
