Industry body Ficci
on Thursday urged the government
to lower the corporate tax
rate to 28 per cent from 30 per cent in the forthcoming Budget, a move that would boost the industry and help tide over the problems created by the US tax
Minister Arun Jaitley
in his 2015-16 Budget
had promised to reduce the corporate tax
rate to 25 per cent over the next four years. However, he has not been able to cut the rates.
"I am hoping that in this Budget, they will bring down the tax
rate to 28 per cent at least to give a confidence that they are on that path," Ficci's new president Rashesh Shah
He further said that the cut in 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 in more than 30 years.
approved the $1.5 trillion tax
bill, which includes permanent tax
breaks for corporations and temporary tax
cuts for individuals, by a final vote of 51-48.
"Bringing the tax
rate to 28 per cent will be a good start," he said adding that in the absence of the rate cut, the corporate sector would start becoming unproductive.
On the economic growth prospects, Shah said he expects the economy
to grow by about 7.5 per cent in the next fiscal.
The economy, according to some experts, is likely to record sub 7 per cent growth in the current financial year due to the impact of demonetisation and roll out of the Goods and Services Tax
is slated to come out with the advanced estimates for the current fiscal on Friday.
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