Corporate India has pitched for “uniformity” in the corporate tax rate, stating that a rate of 22 per cent for existing firms and 15 per cent for new manufacturing firms creates “inequality”.

All corporate tax rates in the country should be converged to 15 per cent — with no exemptions and incentives — over three years from April 1, 2023, Confederation of Indian Industry President Vikram Kirloskar suggested to Finance Minister Nirmala Sitharaman at the pre-Budget meeting convened with prominent industrialists here.

Kirloskar highlighted that convergence of the corporate tax rate (to 15 per cent) will lead to greater clarity and prevent any disputes. This will also assure investors on the glide path of the corporate tax regime, he said.

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

The CII came up with 10 points to improve ease of doing business, strengthen the role of the State, enhance export competitiveness, and revive private investment and growth.

These include decriminalising various laws and procedures as is being done for the Companies Act, stating that any such move would address the trust deficit.

CII also made a case for extending the reduced corporate tax rate of 22 per cent to Limited Liability Partnerships and partnership firms.

Bharti Enterprises Chairman Sunil Mittal told reporters after the meeting that the suggestions focussed on creating more freedom for industry to perform. “I have come here today to discuss only one thing — make doing business easy in the country. That was what my thrust was. What we look forward to this (upcoming) Budget is that they unleash the energy of Indian entrepreneurs to do more.”

FICCI President Sandip Somany said the industry suggested a reduction in income tax for those who earn less than ₹20 lakh in a year so that there are more disposable funds in the hands of consumers and the economy benefits.

Assocham President Balkrishna Goenka said that States would have to play an important role in ‘ease of doing business’ and to ensure that last-mile issues are resolved.

Leading Industrialists who participated in the Pre-Budget meeting included 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.

Related Topics
comment COMMENT NOW