Corporate Tax Rate Must Be Reduced To 20% – NDTV Profit

I am personally expecting a reduction in corporate tax rate from the upcoming budget.  Corporate tax rate must be reduced to 20 per cent as in most advanced countries. United States just reduced their tax rate to 20 per cent, Hong Kong has corporate tax rate at 16.5 per cent and Singapore has tax rate from 8 to 15%. The upcoming budget should provide some kind of incentive by way of the tax break for exporters, given the tough situation faced due to the implementation of GST and the delay in refunds as well as the strong rupee.

Budget 2018 should also re-look at dividend tax in the hands of the individual receiving the dividend as the same has been already subject to tax twice, firstly when the company earns a profit and secondly when the company issues dividend it pays 20 per cent dividend tax and third time now in the hands of the recipient where again the recipient pays tax on dividend received over Rs 10 Lakhs.  It is not fair that the same income should be taxed three times from the taxpayers.

Budget should focus on providing incentives to employment generating industries by way of tax break to further the policy, “Made in India”, goal. A clear guideline of the taxation policy is required with regard to personal as well as corporate tax for the next 3 to 5 years so that there is no yearly speculation and companies can make long term business plans based on the same.

(Ajay Agarwal is Finance Director, Entrepreneurs’ Organisation, South Asia)

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.

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