Lower corporate tax rates to boost manufacturing, Make in India: Industry

The FM announced slashing on corporate tax on new manufacturers to 15 per cent, 22 per cent to all others

Finance Minister Nirmala Sitharaman on Friday announced a significant cut in corporate tax – a demand the industry has been putting forward for the past few years. Giving much relief to the corporate companies, the government has slashed the tax rate on all domestic firms to 22 per cent. Further, new manufacturing companies that will come up from October 1 onwards will have to pay tax at 15 per cent rate, Sitharaman said.

This means, while the effective tax rate for existing firms now stands at 25.1 per cent, for new manufacturing companies it will be 17.01 per cent – after