Corporate tax may be cut by 1% in Union Budget, say sources

Finance Ministry sources say the government could aim to cut atleast 1 percent in corporate tax in the next Union Budget and would ideally like to pare it by 1.5 percent in the next one year. 

The government is trying to cut corporate tax from the current 30 percent to 25 percent in the next four years. Sources add that at no point will the government phase out exemptions without cutting corporate tax .

The intention, sources say is, to have a simplified tax regime in the country.