Will consider corporation tax rate benefit extension: FM Sitharaman

The minister assured the industry of all possible government support with the intent of supporting Indian business and reviving the economy.
Finance Minister Nirmala Sitharaman said on Monday the government would consider an extension in the deadline for availing of the lower 15 per cent corporation tax rate on new investments. 

The concessional corporation tax rate against the existing 25-30 per cent is available for new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023. 

“I will see what can be done. We want industry to benefit from the 15 per cent corporation tax rate on new investments and I take your point for considering an extension in the deadline of March 31, 2023,” Sitharaman said, addressing members of industry body Ficci.

The FM said demand for GST rate reductions would go to the GST Council, but the body of Union and state FMs is also looking at revenue. The decision for rate cut for any sector has to be taken by the Council, she said. The GST Council is likely to meet on Friday through video conferencing. 
The minister assured the industry of all possible support. Sitharaman clarified that the Covid-19 Emergency Credit Facility covers all companies and not just micro, small and medium enterprises (MSMEs).

In the biggest reduction in 28 years, the government in September slashed corporation tax rates by up to 10 percentage points to attract private investment and push sagging economic growth. Base corporation tax for existing companies was reduced to 22 per cent from 30 per cent, and to 15 per cent from 25 per cent for new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023.

On the question of liquidity, she said: "We have fairly clearly addressed the issue of liquidity. There is definitely the availability of the liquidity. We will look into it if there are still issues." She also said every government department had been asked to clear dues and if there are any issues with any department, the government would look into them.

The minister suggested the industry to submit their recommendations related to the ministry of corporate affairs or Sebi deadlines, so that necessary steps could be taken.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel