The proposed reduction of corporate tax rate from 30 per cent to 25 per cent over four years would make India competitive among ASEAN countries and attract more investments, Revenue Secretary Shaktikanta Das said on Wednesday. Drawing a comparison, he said the corporate tax rate was 25 per cent or less in other ASEAN nations, which were India’s main competitors.
“The reduction in corporate tax rate is expected to make India competitive, it is expected to make India as an attractive destination for investments, for both domestic and for global investors,” he said at an interactive session of CII here. “With regard to taxation structures we needed to be competitive...India can be competitive only when we move towards a corporate tax of 25 per cent. It is not possible for us to do (it) in a single year,” he added. Finance Minister Arun Jaitley in budget 2015-16 had announced a roadmap for reduction of corporate tax rate to 25 per cent in the next four years.