Low tax rate has a sunset date, says Revenue Secretary Tarun Bajaj

'I will not be surprised if, in the current year, my tax-to-GDP ratio is the highest-ever for direct and indirect taxes taken together', he said

The government wants domestic companies to set up their new manufacturing units as soon as they can. This is to avail the concessional tax rate of 15 per cent as it comes with a sunset clause, revenue secretary Tarun Bajaj said on Friday.

Speaking at an event by industry body Assocham, Bajaj also said India’s tax-to-GDP ratio could be the “highest ever” in the current year.

In her 2022-23 Union Budget, finance minister Nirmala Sitharaman said the concessional 15 per cent corporate tax rate would be available for one more year — till March 2024 — for newly-incorporated manufacturing units.

While reducing the