Budget 2020: IT firms want 15% corporate tax for services companies in SEZs

The sunset clause for SEZ nearing - March 31, 2020 - and the IT industry has been a big beneficiary of the policy

Rationalisation of goods and services tax (GST), 15 per cent corporate tax rate for services companies in special economic zones (SEZs), and relaxation for start-ups from some existing tax rates were some of the demands of information technology (IT) firms and start-ups at a pre-Budget discussion with the Finance Ministry on Monday.

IT and business process management (IT-BPM) industry body, the National Association of Software and Services Companies (Nasscom), said the 15 per cent corporate tax, currently applicable to new manufacturing companies in SEZs, should be extended to new services firms. 

“This will achieve the outcome of all new manufacturing and services