Finance minister Arun Jaitely on Sunday said the government would start reducing corporate tax rate from next year onwards in line with the plan announced in the last Budget to bring it down to 25% from 30% at present.
“Though corporate tax rate is 30%, the effective rate is 22% because of various exemptions. But I shall phase out the exemptions in due course to make filing more simple,” Jaitely said addressing an interactive session organized by the Indian Chamber of Commerce.
He said various kinds of exemptions brought discrimination in different categories of businesses, which, down the line, created conditions for corruption. Corruption in business decisions is an addition on cost to businesses. The government would not continue with any practice or scheme that which “creates the foundation to corrupt practices”.
He said in one year, the government has brought down taxes to global standards. It has rejected the idea of retrospective taxes, which has been a great relief to the business community. It would now cut down on direct taxes because “higher direct taxes don’t support business,” Jaitely said. However, indirect taxes have registered 37% growth in the last four months and the growth has been consistent during the period.
Laso, taking a dig at the Congress, Arun Jaitely said the principle opposition party have taken an obstructionist tactic in the Rajya Sabha and are putting up irrational suggestions to prevent the GSTs roll out.