Indian Corporate Tax Rate Amongst Highest in the World..!

Indian Corporate Tax Rate Amongst Highest in the World..!

We always get the feeling that we're paying too much tax. And so do our companies. But how do our corporate tax rates really stack up against the rest of the world?

Indian Corporate Tax Rate Amongst Highest in the World

Our corporate tax rate stands at almost 35%, which is the second highest in the world. And the finance minister in his 2015 budget speeches did express an intent to bring the rate down.

That said, one must also note companies get a whole raft of exemptions that - as per government claims - brings the aggregate effective tax rate of India Inc. down to just 23%.

This being the case, as we look towards the upcoming Union Budget for 2017-18, what is the need of the hour is to get rid of the complicated layers of exemptions and to have a simple and uniform tax rate much lower than the current one.

This will not only make for better tax compliance by companies, it will also make it easier for the tax department to administer appropriate tax collections as well as reduce tax litigation. Now wouldn't that be a huge shot in the arm for the 'ease of doing business' in India?

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