Pre-Budget meet: India Inc pitches for single corporate tax rate of 15% over three years

Budget

At the Pre-Budget meet organised on Thursday, Corporate India pitched for uniformity in the corporate tax rate, stating that a rate of 22 percent fixed for existing firms and 15 percent meant for new manufacturing firms creates “inequality”.

Pre-Budget meet

All corporate tax rates applicable in the country should congregate to 15 percent, with zero exemptions and incentives, over the three years from April 1, 2023, Confederation of Indian Industry President Vikram Kirloskar suggested to the Union Finance Minister Nirmala Sitharaman at the pre-Budget meeting convened with prominent industrialists here.

Kirloskar underlined that uniformity in the corporate tax rate (to 15 percent) will bring greater clarity and omit any disputes. This will also give assurance to the investors on the glide path of the corporate tax regime, he added.

“In general, we would suggest that the principle should be to have lower tax rates and fewer exemptions,” Kirloskar said.

The CII represented ten points during the meet meant to improve ease of doing business, level-up the role of the State, improve the export competitiveness and restore private investment and growth.

These points also include decriminalising several laws and procedures as is being done for the Companies Act, citing that any such move would highlight the trust deficit.

Leading Industrialists namely BVN Rao, Business Chairman, GMR Group; Vipin Sondhi, Managing Director and CEO, Ashok Leyland Ltd; Sanjiv Goenka, Chairman, RP-Sanjiv Goenka Group; Jatin Dalal, Global Chief Financial Officer (CFO), Wipro Ltd.; Manoj Chugh, President, Group Public Affairs and Member-Group Executive Board, Mahindra & Mahindra Ltd.; Ravi Raheja, Group President, K Raheja Corp Group; and Acharya Balkrishan , Chairman Patanjali Ayurved Ltd. participated in the Pre-Budget meeting.

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