The twin impact of tax rate cuts and a slowdown in collections due to shrinking consumption in a sagging economy may reflect in unachieved revenue targets. Companies in China, South Korea and Indonesia pay 25 per cent tax, while those in Malaysia pay 24 per cent. Hong Kong has the lowest corporate tax rate of 16.5 per cent while Singapore has 17 per cent rate and Thailand and Vietnam levy 20 per cent tax on companies. Following the sharp cut in the corporate tax rate, there has been a clamour for relief in the personal income tax. With regard to indirect tax, GST remains a matter of concern for various reasons.

Source: Mint January 01, 2020 07:52 UTC