MC Survey: CEOs anticipate stable corporate tax regime in budget
India Inc is not expecting any significant changes in the current corporate tax regime in the upcoming budget, according to a Moneycontrol and Deloitte survey of 78 chief executive officers (CEOs) across industries.
When asked about their expectations for corporate tax, 67 percent of the CEOs voted for a stable corporate tax regime, 17 percent voted for a moderate reduction, 14 percent voted in favour of eliminating the separate calculation of surcharge and cess, while the remaining 3 percent voted for a moderate increase in corporate tax.
Finance Minister Nirmala Sitharaman will be presenting the Union Budget for FY25 on July 23.
Meanwhile, Gurpreet Singh Sidana, CEO of Religare Broking, is of the view that the corporate tax rate is expected to remain unchanged though he believes that the government might consider extending the 15 percent concessional tax rate for new manufacturing units for an additional 3 to 5 years.
Currently, under Section 115BAB, newly established domestic manufacturing companies are subject to a reduced tax rate of 15 percent on their total income. This benefit was available to domestic manufacturing companies registered on or after October 1, 2019, and which commenced manufacturing or production on or before March 31, 2023. The Finance Act 2022 extended this sunset date to March 31, 2024.
“I don't foresee any major changes in corporate tax, but if they do make changes, it will be in specific sectors where the government wants to reduce the import bill. Or they might create a tax structure with incentives or exemptions,” said Hitesh Thakkar, CEO, ITI AMC.
Similarly, Vikas Gupta, CEO of OmniScience Capital, believes that certain sectors might get some incentives in terms of R&D, PLI, capex, or other rebates.
Jimeet Modi, CEO of SAMCO Group, said that the policy approach adopted by the government in its earlier stint should continue and there should not be any shift towards any populist measures, which are anticipated due to the pressure of coalition.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.