Corporate tax accounted for a little less than a fifth (19%) of the government’s receipts last fiscal whereas income tax receipts accounted for just 14% of total receipts. Jaitley in his second budget speech in February 2015 had announced phasing out of tax incentives with effect from 1 April, 2017 and reducing the corporate tax rate from 30% to 2%5. Corporate tax accounted for a little less than a fifth (19%) of the government’s receipts last fiscal whereas income tax receipts accounted for just 14% of total receipts. An equal number of participants believe profit-linked tax incentives should continue for growth sectors like infrastructure. “Considering that some tax incentives will continue, one of the most eligible sectors is the infrastructure sector since the higher tax cost will impact the common man,” it said.

Source: Mint January 15, 2017 06:23 UTC