Corporation tax paid by listed companies at 4-year low in Q2 FY25

The recent decline in corporate earnings is likely to cast a shadow on the government’s direct-tax receipts and its fiscal position.

  Tax payment by listed companies was down 7 per cent year-on-year (Y-o-Y) in Q2FY25, their worst showing in the last four years and the first decline in corporate tax in seven quarters.

  The last decline was reported in Q3FY23, when tax payment had shrunk 0.7 per cent Y-o-Y.

  The combined corporate tax outgo of 3,515 companies in the Business Standard sample declined to around Rs 1.09 trillion in July-September 2024 (Q2FY25) from around Rs 1.18 trillion