Business Standard

Corp tax collections as proportion to GDP yet to reach pre-tax cut levels

After surcharges and cesses, this tax comes to 17.01 per cent against 29.12 per cent if the companies don't opt for this tax

tax taxation

BS Reporter New Delhi

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After rationalisation of corporation tax to attract companies to invest in India, the receipts from this head as per cent of the ecocnomy’s size is crawling up but have not reached the levels of pre-2019-20 when this tax was overhauled.

In fact, it is projected to fall short of 2018-19 and 2017-18 levels even in 2024-25 even as the reduced 15 per cent tax for those setting up new production units was withdrawn.  

However, the corporation tax to GDP ratio has crossed 3 per cent since 2021-22 after falling to sub-3 per cent in the first two years of the rate overhaul.


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First Published: May 14 2024 | 5:38 PM IST

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