'Corporate tax to be gradually cut to 25 percent'

Finance Minister Nirmala Sithraman. Pic/Twitter IANS

On Monday, Finance Minister Nirmala Sitharaman said that the corporate tax rate for companies with over Rs 400 crore turnover annually will be gradually cut to 25 percent and the government will support such wealth creators. During her maiden budget in July 2019, Finance Minister Nirmala Sitharaman had cut corporate tax for companies with an annual turnover of up to Rs 400 crore to 25 percent from 30 percent.

Last year, former finance minister Arun Jaitley had cut the corporate income tax rate to 25 percent for companies with a turnover of up to Rs 250 crore. While speaking at an industry event, Sitharaman said that the corporate tax reduction for the rest of corporates would be gradual. However, the finance minister did not give any time frame for the reduction.

Echoing the sentiments of Prime Minister Narendra Modi's Independence Day speech, the finance minister said that Indian wealth creators and entrepreneurs will be given all kinds of support from the government. In his Independence Day speech, PM Narendra Modi had said that wealth creators in the country should be given due respect.

Also Read: FPIs that register as cos to be out of surcharge ambit: Nirmala Sitharaman

On the other hand, while reacting on the death of Cafe Coffee Day founder V G Siddhartha's death, finance minister Sitharaman said that business failures in the country should not be tabooed, or looked down upon. While responding to a debate on the Insolvency and Bankruptcy Code (IBC) in the Lok Sabha, Sitharaman said that businessmen should get honourable exit or resolution to the problem in letter and spirit of the IBC.

With inputs from IANS

Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates