Government to list out exemptions that will be phased out soon to bring tax rate to 25 per cent in due course
Finance Minister Arun Jaitley said the government in the next few days will list out the exemptions to be phased out as part of its plans to gradually bring down corporate tax rate to 25 per cent, the first tranche of which will be announced in the Budget in February.
"I have announced a roadmap for direct taxation to bring corporate tax down to 25 per cent by phasing out some of those exemptions. We are going to put in public domain in the next few days some of those exemptions that we intend to phase out in the first round," he said while addressing corporate leaders here.
"I hope to do it in the near future whenever the new Finance Bill comes up."
Mr Jaitley made these comments while participating in an interactive session at the 'National Strategy Day in India' organised by the World Economic Forum (WEF) and the Confederation of Indian Industry (CII).
The minister in his Budget in February had announced the government's intention to reduce corporate tax from 30 per cent to 25 per cent over the next four years.
Mr Jaitley also said the government has been able to address various tax legacy issues, including those pertaining to retrospective tax amendment, though two-three problems remain.
On the bankruptcy law, which will make it easier for companies to exit businesses, Mr Jaitley said the endeavour would be to introduce the Bill in the next session of Parliament.
The committee, which was assigned the task of drafting the bankruptcy law, will be submitting its report in the next couple of days.
The government, he added, is also working on updating certain other legislations, especially the Specific Relief Act.
Besides, the government has come out with an ordinance to fast-track dispute resolution through arbitration.