The main objective of the reduction in corporate tax was aimed at attracting fresh investment in the manufacturing sector.
Gross direct tax collection increased by 5 per cent till November, Finance Minister Nirmala Sitharaman said on December 2 as she allayed fears of corporate tax reduction impacting revenue collection. Replying to a debate on Taxation Law Amendment Bill, 2019 in the Lok Sabha, the minister categorically said there is no decrease in direct tax collection.
In fact, there is an increase of 5 per cent in the gross direct tax collection till November this fiscal, she said.
Historically, maximum collection of direct taxes happens in the last quarter of the fiscal, she added.
The main objective of the reduction in corporate tax was aimed at attracting fresh investment in the manufacturing sector.Sitharaman said several domestic and global firms have expressed interest in investment post announcement of the reduction in corporate tax rate.LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.