Industry body Ficci has said that it has urged the government to lower the corporate tax rate to 28 per cent from 30 per cent in the forthcoming Budget, a move that would boost the industry and help tide over the problems created by the US tax reforms. As per reports, Finance Minister Arun Jaitley in his 2015-16 Budget had promised to reduce the corporate tax rate to 25 per cent over the next four years. However, he has not been able to cut the rates.
Commenting on the issue, Ficci's new president Rashesh Shah told the media, "I am hoping that in this Budget, they will bring down the tax rate to 28 per cent at least to give a confidence that they are on that path." He further said that the cut in tax rates would also help the Indian industry in meeting the challenges emanating from tax cuts by the Trump administration in the US and its aftermath in other developing countries.