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 reforms.
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.
The Senate 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 (GST).
The government is slated to come out with the advanced estimates for the current fiscal on Friday.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)