'Views may be supplemented and justified by relevant statistical information about the production, prices, revenue implication of the changes suggested'.
Budget
2020 : The finance ministry for the first time has sought
suggestions on changes in direct and indirect tax rates from the
industry. This comes at a time when a revenue shortfall and
consumption slowdown are threatening to upset the government’s
finances.
In
a letter to industry associations, the department of revenue has
sought suggestions for “changes in the duty structure, rates and
broadening of tax base on both direct and indirect taxes”.
Finance
Minister Nirmala
Sitharaman announced tax cuts for the corporate sector besides
other sops after the Budget in July as urgent measures to arrest
economic slowdown.
Sitharaman
will be presenting her second Union Budget on February 1. The
comments need to be sent to the department by November 21. The
finance ministry will begin its pre-Budget consultations with
representatives of different sectors and stakeholders.
“Your
suggestions and views may be supplemented and justified by relevant
statistical information about the production, prices, revenue
implication of the changes suggested and any other information to
support your proposal,” the ministry said.
Sitharaman
in September announced steep cuts in corporation tax, effective April
1 this fiscal year.
The
corporation tax rate was cut to 22 per cent from 30 per cent for
existing companies that do not enjoy any exemptions, and to 15 per
cent from 25 per cent for new manufacturing companies.
With
surcharge and cess, the effective tax rate for the existing companies
has come down to 25.17 per cent from 35 per cent.
As
against initial estimates of a revenue outgo of Rs 1.45 trillion, the
income tax department is estimating a reduction of around Rs 1
trillion.
The
corporation tax rate cut has triggered a demand for a reduction in
personal income tax rates as well.
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