FICCI seeks cut in corporate tax, MAT abolition

New Delhi, May 24 

Industry body FICCI today sought reduction in corporate tax and abolition of Minimum Alternate Tax (MAT) to spur investment as the BJP-led NDA government gears up for its second term.

The government had presented an Interim Budget for 2019-20 in February. A full Budget is likely to be presented in July. “The key recommendation was that the focus of the government should be to spur domestic investment and retain India’s competitiveness globally, corporate tax rate cut should be considered,” FICCI said after its delegation met Revenue Secretary Ajay Bhushan Pandey.

In the 2015-16 Budget, the government had announced that the corporate tax rate would be gradually lowered to 25% from 30% over the next four years and exemptions available to companies would be phased out.

In the subsequent years, the tax rate was reduced to 25% for companies with a turnover of up to Rs 250 crore. During the meeting, FICCI said with phasing out of exemptions and deductions available under the Income Tax Act and to avoid complexities arising under new accounting norms, there is a need to review the MAT.  — PTI