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Industry pushes lower corporate tax in pre-Budget meet with FM

Press Trust of India  |  New Delhi 

Corporate today sought lower and more incentives for while exporters called for quicker refunds at a meeting with Minister in the run-up to the last full-year Budget of the before 2019 general elections.

The industry bodies suggested lowering the corporate 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 on export or lower levies on earnings and faster clearance of refunds.


"The minister has promised 25 per cent corporate rate long back and we expect that the minister will fulfil his promise in this Budget," President Pankaj Patel told PTI.

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 is among the highest. We do need to create more demand and capacities for private investment and if you see today, has increased the rates," CII President Shobana Kamineni said.

CII suggested that the road map for corporate rate for 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 rate for export earnings, so we have sought a lower rate of on export earnings than the normal corporate rates," EEPC Working Committee Member P K Shah said.

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

"We have asked the minister to take the corporate 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 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

"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.

"We have requested for reduction in the direct taxes and a scheme to boost women employment and expediting the refunds under as they have been delayed," P R Aqueel Ahmed, Vice- Chairman of the Council for Leather Exports.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 06 2017. 15:45 IST
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