Budget 2017 is likely to kick off a phase-out of Minimum Alternate Tax

Rate may come down in FY18 and is likely to be scrapped over 3-4 years

The Union Budget is expected to provide relief to companies which come under the minimum alternate tax (MAT). Sources who attended a presentation made by the finance ministry last month said the current tax framework has made MAT a redundant levy.

"While the government has already promised to lower the corporation tax rate further, it has also started work on ending tax rebates and tax holidays for companies. If foreign institutions can be exempt from such a tax, even domestic companies should get a similar benefit,” the sources said.

The reducing gap between corporation tax and MAT is one of