MC-Deloitte CEO Survey: 62% of CEOs are okay with no changes in corporate tax rates

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India Inc is not expecting any significant changes in the current corporate tax regime in the upcoming budget, according to an exclusive Moneycontrol-Deloitte survey of 45 CEOs conducted between January 10 and January 22 across the financial services, consumer goods, technology, and energy sectors.

When asked about their expectations for corporate tax, 62 percent of the CEOs voted for a stable corporate tax regime with no changes, 29 percent urged that the rates be kept simple by eliminating the separate calculation of surcharge and cess, while 9 percent voted for a moderate reduction.

Finance Minister Nirmala Sitharaman will be presenting the Union Budget for FY26 on February 1.

Currently, under Section 115BAB, newly established domestic manufacturing companies are subject to a reduced tax rate of 15 percent on their total income. This benefit was available to domestic manufacturing companies registered on or after October 1, 2019, and which commenced manufacturing or production on or before March 31, 2023.

In the Budget presented on February 1, 2023, the government extended the concessional 15 percent corporate tax rate for new manufacturing units by one more year till March 2024.

The tax rate was then phased out and stopped in 2024.

The government is considering reintroduction of the concessional corporate tax rate in the upcoming Union Budget 2025, CNBC-TV18 reported on January 16 citing sources. Several leaders of India Inc have been asking the government to reintroduce the scheme. However, the rate may be set at 18 percent, higher than the earlier 15 percent, the report added.

Concessional corporate tax was introduced in 2019. It allowed any new domestic company incorporated on or after October 1, 2019 to pay income tax at the lower rate of 15 percent if they commenced their production on or before March 31, 2023.

The concessional tax rate was lower than the 22 percent rate that generally prevailed for companies.