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Govt to consider extension in deadline for availing 15 pc corporate tax rate benefit: Nirmala Sitharaman

Govt to consider extension in deadline for availing 15 pc corporate tax rate benefit: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Monday said the government will consider an extension in the deadline for availing the lower 15 per cent corporate tax rate on new investments, due to the COVID-19 pandemic.

In the biggest reduction in 28 years, the government in September last year slashed corporate tax rates by up to 10 percentage points to attract private investment and push sagging economic growth.

Base corporate 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.

“I will see what can be done. We want industry to benefit from the 15 per cent corporate 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 FICCI, the minister assured the industry of all possible government support with the intent of supporting Indian business and reviving the economy.

Sitharaman clarified that the COVID-19 Emergency Credit Facility covers all companies and not just micro, small and medium enterprises (MSMEs).

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 has been told to clear dues and if there is any issue with any department, the government will look into it.

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