Budget 2018: Company tax cut falls short of narrowing gap with peers

Modi's government pledged in 2015 to bring down corporate taxes over four years to improve India's investment climate

India cut the corporate tax rate for some firms while excluding the biggest companies that contribute bulk of the collections, falling short of narrowing a gap with several other economies that have lowered the levy to attract investments.

The basic rate will be reduced to 25 per cent for companies with annual revenue of up to 2.5 billion rupees ($39 million) in the year starting April 1, Finance Minister Arun Jaitley said in his budget speech on Thursday. “This will leave them with higher investible surplus, which will create more jobs,” he said.