Ficci for cut in corporate tax rate in Budget

Industry chamber Ficci Sunday recommended the government to cut corporate tax rate across the board to 25 per cent irrespective of turnover in the forthcoming Budget to spur economic growth and increase overall tax collections.

The chamber has also suggested revision in the tax slabs for the individual taxpayers with the top 30 per cent rate to be applied beyond Rs 20 lakh annual income.

“Businesses today are faced with high tax cost leading to increased cost of production and resultant lower surplus for reinvestment and expansion. The basic corporate tax rate of 30 per cent coupled with dividend distribution tax rate of 20 per cent makes the effective tax cost for a company too high,” Ficci said in a statement.

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