Corporate tax cut: Impact of savings to vary from sector to sector, says Icra

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Published: September 28, 2019 1:25:39 AM

Three sectors — oil & gas, metals & mining and IT together account for close to 50% of the total tax contribution of corporate India.

According to Icra, tax contribution has been skewed towards few key sectors and high effective tax rates have resulted in certain sectors contributing significantly to overall taxes.

The recent cut in corporate tax announced by the government augurs well for the industry, according to Icra ratings. The impact of the savings would, however, vary from sector to sector, which would determine the benefit to the end consumer by way of price reduction.

According to Icra, tax contribution has been skewed towards few key sectors and high effective tax rates have resulted in certain sectors contributing significantly to overall taxes.

Three sectors — oil & gas, metals & mining and IT together account for close to 50% of the total tax contribution of corporate India.
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