Business Standard

Lower the corporate tax rate

Small changes in taxation can kick off disproportionate responses by way of shifts in capital

Lower the corporate tax rate
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Ajay Shah
India is unusual, when compared with emerging markets or the G20 countries, on the high taxation of corporate profit. The Indian corporate tax rate was higher than the G20 median, by about 9 or 10 percentage points, in 2001, 2005, and 2006. After that, India’s gap has risen to 21 percentage points, as corporate taxation has declined the world over. India gains by reducing corporate taxation as this improves the appeal for investing in India for local and foreign persons, it reduces double taxation of the corporate form, and it generates increased property and tax revenues through indirect channels. This
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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