Having splurged money on farmers and individual taxpayers ahead of the crucial General Election, the government has ignored the long-standing demand of India Inc for reduction in corporate tax from 30 per cent to 25 per cent.
Ashok P Hinduja, Chairman, Hinduja Group of Companies, said that in 2015 the government agreed to cut corporate tax to 25 per cent progressively in four years. About 7,000 top companies still await the cut as it will enhance private investment.
Corporates were also expecting the government to reduce minimum alternate tax from 18.5 per cent given the strain in the economy. Last Budget, the government had reduced corporate tax rate to 25 per cent for businesses with turnover of ₹250 crore.
Nabin Ballodia, Partner, Tax, KPMG, said, “No major tax announcements for the corporate sector and they will have to wait for the full Budget post the elections for any kind of relief.”
“I was expecting some measures to be announced towards easing the access of funds for the infrastructure sector, especially on how to channelise long-term funds from the insurance and pension funds into the infrastructure sector. The Interim Budget could not address that part. I hope that aspect would get adequately covered in the actual Union Budget 2019-20 that will be placed after the General Elections,”said Hemant Kanoria, Chairman and Managing Director, Srei Infrastructure Finance Limited.
CJ George, Managing Director, Geojit Financial Services, said, “At a time when the unemployment is reported to be at 45-year high and corporate sector investment is at 14-year low, there has been widespread expectations for direct investment boosters in the Budget for creating more job opportunities. This is the only disappointment in the Budget.”