Industry Ministry Keen on Lowering Company Taxes

There are assumptions that a change in the MAT will beef up investment in core sector projects.

The finance ministry receives abundant of proposals every year during the budget session. The proposal of reducing the tax rates by the industry department is also among these proposals. There are chances that this proposal of the industry department will get ignored like the other proposals.

The government might not find it of any good in fulfilling the gap in the public revenue.

Again, 2014 will be the last session for the UPA government till the next election and also this year’s budget session will be the last budget session for the UPA government. This can force the government, not to increase the tax rates this year.

In addition to all these, the industry department is also expecting attrition in the dividend distribution tax rate by 5 percent. The dividend distribution rate was 15 percent. The department is stating that the reduction in this tax rate will bring more revenue to the government.

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