Budget 2019 should take steps towards corporate tax rates rationalisation for giving impetus to economic growth


 –  Neeraj Jain –

Manufacturing companies need regular re-investment in business which facilitates capacity addition hence economic growth and new employment generation. Corporate tax rates rationalization would facilitate required re-investment in business. In line with Government’s commitment to bring down corporate tax rate, we expect the government cuts corporate tax rate to 25% across the board irrespective of turnovers to spur economic growth.

SEZs were initially formed by the Government with clear focus on tax rationalization for specified period; however, later MAT was imposed on SEZ units as well. Units functioning in SEZs should not be subject to MAT which is currently impacting re-investment in SEZ business.

Further, government has recently taken constructive steps towards making GST compliance simpler for the companies/industry. Going forward, we expect further simplification of the GST guidelines.


About the author

Neeraj Jain

Author and Entrepreneur

Neeraj Jain, CFO, Cosmo Films

Disclaimer : The views expressed by the author in this feature are entirely his  own and do not necessarily reflect the views of INVC NEWS.


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