Will consider expanding corporate tax rate benefits: FM Sitharaman

Finance Minister Nirmala Sitharaman said on Monday that the government would consider extending the deadline to benefit from the lower corporate tax rate of 15% on new investments.

The concessional corporate tax rate from the existing 25-30% is available for new manufacturing companies incorporated after October 1, 2019 and commencing operations before March 31, 2023.

“I will see what can be done. We want the industry to benefit from the 15% corporate tax rate on new investments and I take note of your argument to consider an extension by the March 31, 2023 deadline,” Sitharaman said, addressing members. of the industry body Fici.

The FM said the request for GST rate cuts would go to the GST Board, but the Union and State FM body is also looking at revenue. The decision to cut rates for any sector must be taken by the Council, she said. The GST Council is scheduled to meet Friday via videoconference.

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The Minister assured the industry of all possible support. Sitharaman clarified that the Covid-19 emergency credit facility covers all businesses and not just micro, small and medium enterprises (MSMEs).

In the biggest cut in 28 years, the government in September slashed corporate tax rates by up to 10 percentage points to attract private investment and boost sluggish economic growth. Basic corporate tax for existing companies has been reduced from 30% to 22% and from 25% to 15% for new manufacturing companies incorporated after October 1, 2019 and commencing operations before March 31, 2023.

On the issue of liquidity, she said: “We have quite clearly addressed the issue of liquidity. There is certainly the availability of liquidity. We will look into it if there are still problems.” She also said that each government department had been asked to settle dues and that if there were any issues with any department, the government would look into them.

The Minister suggested that the industry submit its recommendations regarding the deadlines to the Ministry of Corporate Affairs or the Sebi, so that the necessary measures can be taken.

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