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Corporate tax rate will be gradually cut to 25%: Finance Minister
Aug-20-2019

With an aim to support Indian wealth creators, Finance Minister Nirmala Sitharaman has said corporate tax rate will be gradually cut to 25 per cent for companies with an annual turnover of over Rs 400 crore. Though, she did not give a timeframe for the reduction. She said the corporate tax reduction for the rest of corporates would be gradual. She added that Indian wealth creator entrepreneurs will be given all kind of support.

She said ‘I would like to underline the fact that we are conscious of that the Indian entrepreneurs are the ones who have been the wealth creators, job creators of this country. We are proud of them and we shall keep supporting them. Every attempt of the government will be towards promoting them, to understand them and also to facilitate them.’ She added that ‘only 0.7 per cent is left … Even for them gradually, hopefully, in the long run, we will be able to bring down the tax to the level of 25 per cent.’

In her maiden Budget, she had cut corporate tax for companies with annual turnover of up to Rs 400 crore to 25 per cent from 30 per cent earlier. Earlier, the then Finance Minister Arun Jaitley had cut the corporate income tax rate to 25 per cent for companies with a turnover of up to Rs 250 crore.

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