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The Budget for 2015-16 is not “pro-rich” or “pro-corporate”, said Shaktikanta Das, Revenue Secretary, at a post-Budget meeting organised by the Confederation of Indian Industry on Tuesday.
The proposed cut in the corporate tax rate by 5 percentage points over four years will not be beneficial to any class of people or investors, he said.
The Budget will only end up expanding the quantum of resources available with corporate entities, he said, adding this could help them invest more and create more jobs.
The Budget had announced a plan to reduce corporate tax as India’s rates were found to be “uncompetitive”, he said, adding that the reduction can help attract more investments into India.
Das said he would not have a problem if promoters withdrew gains from a lower corporate tax payout, as some critics fear. It would only result in more tax payouts by promoters, he added.
Service taxDas said the Budget move to hike service tax from 12 per cent to 14 per cent was not a “revenue augmentation” measure. It was done more as a preparation towards ushering in the goods and services tax (GST) regime, he said.
“It would be difficult to suddenly raise rates overnight. The States will also get to tax services under the GST regime,” Das said.
He added that service tax collection is currently “disproportionately low” given its contribution to the Gross Domestic Product of the country.
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