Budget 2018: 25% corporate tax rate to boost small, medium size companies

Arun Jaitley while presenting the Union Budget 2018 cut tax to 25% for companies below Rs 2.5 bn turnover

The Union Budget 2018 has proposed a lower corporate tax rate of 25 per cent on companies with an annual turnover of up to Rs 2.5 billion. As the tax rate earlier was 30 per cent, this would give a massive boost to the small-and-medium-sized companies that were facing the brunt of demonetisation and goods and service tax. The government said it will forego Rs 70 billion (Rs 7,000 crore) of revenue due to the move.

The lower corporate tax will also cover 99 per