Mumbai: Cut in corporate tax for the companies with turnover of Rs 50 crore or below would befit small and medium enterprises engaged in the export sector, said Engineering Export Promotion Council of India’s Chairman TS Bhasin.
In the Union Budget for 2017-18, Finance Minister Arun Jaitley has proposed a cut in corporate tax rate for micro small and medium enterprises with revenue less than Rs 50 crore to 25% from 30% earlier. A move that will benefit 96% of MSMEs.
Bhasin said the cut in tax would provide some comfort and competitiveness to the small and medium exporters which were facing “short-term pain” due to demonetisation. The association head said that more clarity was needed with respect to the minimum alternate tax and hoped that interest rates came down.
“For realizing 8-10% GDP growth ambition, exports must grow by over 15%. The going has become even more tough in view of the trade disruptions coming from the US , Brexit and the protectionist tendencies being resorted to,” EEPC said in a statement.
Source: The Economic Times
