MC-Deloitte CXO Survey: India Inc backs tax stability, simplification over rate cuts ahead of Budget

MC-Deloitte CXO survey shows improving optimism

• Most executives want stable corporate tax rules with no changes in the Budget
• 32.6 percent seek simpler tax structure to reduce compliance and litigation
• Only 26.1 percent favor moderate corporate tax cuts to spur investment

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As the Union Budget approaches, corporate India appears to be signalling caution rather than clamour for sweeping tax cuts, with senior executives placing greater emphasis on stability, predictability and simplification of the corporate tax regime.

According to Moneycontrol-Deloitte CXO Survey, which drew responses from 47 senior executives across sectors, 41.3 percent of respondents expect the government to maintain a “stable corporate tax regime with no changes” in the upcoming Budget. This was the most popular response, underscoring the strategic importance of certainty and stability, as companies plan long-term investments.

Another 32.6 percent of respondents said the government should focus on “simplifying the tax structure”, particularly by eliminating separate calculations of surcharges and cess.

Executives said complexity in taxation diverts managerial bandwidth and raises compliance costs, often leading to litigation.

“One single rate with no deductions or exemptions; simplification should be the norm to bring more predictability and less litigation. This will attract investments too,” one executive said.

Another noted that companies should not be “wasting mindspace, resources and capacity” on navigating multiple layers of taxation, arguing that a simpler system would allow businesses to focus on value creation.

Meanwhile, 26.1 percent of respondents favoured a “moderate reduction in corporate tax rates”.

While this group was smaller, executives supporting this view linked lower rates to investment revival, capital inflows and infrastructure creation.

“A moderate reduction in corporate tax rates can further stimulate private investment, attract incremental capital inflows, and support long-term infrastructure creation,” one respondent said, adding that it could also improve India’s competitiveness by reducing economic double taxation.

Some executives also broadened the discussion to capital markets, calling for a moderate reduction in income tax alongside the abolition of long-term capital gains tax on equities and equity-linked instruments to boost growth and investment sentiment.

Overall, the responses suggest that corporate India is not pressing aggressively for immediate tax cuts, but instead wants policy continuity and administrative simplicity.

“A stable and predictable corporate tax regime is more important than short-term reductions, as it enables long-term investment planning and global competitiveness,” one executive said.

The survey results indicate that as the government balances fiscal prudence with growth priorities, India Inc is looking less for headline-grabbing tax announcements and more for a framework that is predictable, streamlined and investment-friendly.