Reduce Corporate Tax and Withdraw All Incentives - CII
THE CII President in a meeting with the Finance minister suggested:
Corporate tax be brought down to 18% including all surcharges and cess. In return we can remove all tax incentives, concession and need no grand fathering of previous incentives.
Our calculations of PBT and tax foregone in 2014-15 indicate an effective rate of 19.8% without any tax incentives/ concessions. We believe that in the past when corporate tax has been lowered, corporate tax collection has gone up. An 18% corporate tax should therefore not lead to revenue loss to the Government and at a stroke move us away from a high tax, high concession regime.
This will bring India in line with the most attractive international investment destinations such as Singapore, Sri Lanka, UK and Turkey.
It will send a powerful message to Indian industry and global investors that India is an attractive investment destination and a huge enabler for Make in India.