No tangible benefits from corporate tax rate cut for pharma sector: Icra

The pharmaceutical sector which enjoys a host of tax exemptions will not see any tangible benefits from the corporate tax rate cut announced last week by the government, research firm ICRA has said in a report.

The pharma companies get a slew of tax exemptions such as income tax exemptions for Export Oriented Units or entities operating in special economic zones and GST linked benefits from operating in tax free zones among others. Hence, several leading players have a tax rate of 24-26 per cent, which falls in line with the new corporate tax rate of 25.2 per cent.

According to the