Finance Minister Nirmala Sitharaman’s Budget 2025-26 has sparked debate over the absence of any mention of corporate tax. While the speech focused on personal income tax relief, investment incentives, and GST revisions, corporate tax remained conspicuously missing, leaving businesses and economists speculating about the government’s next move.
Adding to the uncertainty, Sitharaman announced that a new Income Tax Bill will be introduced next week, leading many to wonder whether corporate tax changes will be revealed separately.
Social media reactions were swift, with some predicting tax cuts for corporations while middle-class taxpayers saw little change. Concerns also emerged over potential GST increases that could disproportionately impact lower-income groups. Recent data shows that individual taxpayers now contribute more than all companies combined. In 2019-20, corporate tax (Rs 556,876 crore) was higher, but by 2023-24, income tax surged to Rs 1,156,000 crore, surpassing corporate tax (Rs 1,042,830 crore). Critics argue individuals bear a growing burden while corporations benefit from tax cuts. With no clear indication of corporate tax revisions in the budget, businesses and taxpayers are now waiting for the Finance Bill to provide much-needed clarity.