The government wants new domestic companies to set up their manufacturing units in India faster and hence the concessional tax rate of 15% has been extended till March 2024, Revenue Secretary Tarun Bajaj said on Friday.
Stating that direct and indirect tax collections are growing and there is a good jump, Mr. Bajaj said this means the corporate sector was also doing well, and India’s tax-to-GDP ratio in the current year “so far”. most of”.
Budget 2022-23 has proposed that a concessional 15% corporate tax rate will be available to newly incorporated manufacturing units for one more year till March 2024.
In September 2019, the government had reduced the corporate tax rate, saying that any new domestic company formed on or after October 1, 2019, making fresh investment in manufacturing, would have the option to pay income tax at the rate of 15%. Will happen. They started their production on or before March 31, 2023.
However, these companies will not be allowed to avail any income tax exemption/incentive.
“Our tax:GDP ratio went down to below 10% the year we brought down the tax rates, but now it has started coming up. I would not be surprised if in the current year, my tax-to-GDP ratio is the highest ever for direct and indirect taxes,” Mr Bajaj said at an ASSOCHAM event here.
India has been able to more than double its capital expenditure in the last three years, and that will boost GDP growth, and decrease a lot of things.
“Jobs will drop, business, taxes and income will improve,” he said.
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