Govt Cuts Corporate Tax By 10%

Surprise big bang reform reduces effective Tax Rate for firms to 25.17% from 34.94%.

The government on Friday sprang a surprise big bang reform with Finance Minister Nirmala Sitharaman announcing the slashing of the country’s corporate tax rate by as much as 10 percent to spur investment, revive growth and create more jobs in a slowing economy.

The effective tax rate for existing companies, after considering surcharges and cess such as Swachh Bharat cess and education cess which are levied on top of the income and corporate tax rates, has been cut to 25.17 percent as compared to 34.94 percent until now. The tax break works out to a staggering Rs 1.45-lakh crore.