National
Corporate tax to be cut only when exemptions end: Jaitley
New Delhi, Feb 5 (IANS) Declaring that tax buoyancy and the taxation base have increased in India significantly in recent times, Finance Minister Arun Jaitley on Monday held out hope of further cuts in corporate and indirect taxes in future in line with the government’s earlier promises.
At a post-budget interaction here organised by industry chamber Ficci, he said that the corporate tax rate can be brought down to the promised 25 per cent only after all the previous exemptions granted to industry had ended.
“When I had promised in 2015 to cut the corporate tax rate to 25 per cent from 30, in four years, I had also categorically mentioned it would go with phasing out exemptions,” the Finance Minister said.
“However, exemptions have a ‘sunset’ date, and if you phase them out before the expiry of the sunset clause then one is open to charges of retrospective action,” he said, citing the Vodafone tax controversy in this connection.
“So, we will wait for the sunset clause to die out. It would not be proper to end exemptions midway as some industries may have been set up based on them. The opportunity to reduce the corporate tax rate will arise when all the exemptions end,” he added.
Presenting Budget 2018-19 on Thursday, Jaitley announced that corporate tax would be reduced to 25 per cent from the coming fiscal for companies which had a turnover up to Rs 250 crore during 2016-17. In his budget last year he had announced a similar reduction for companies with annual turnover of less than Rs 50 crore in fiscal 2015-16, which “benefited 96 per cent of the total companies filing tax returns”.
Raising the ceiling next fiscal in line with the new definition for SMEs “will benefit the entire class of micro, small and medium enterprises which accounts for almost 99 per cent of companies filing their tax returns,” he said.
Jaitley told industry leaders here on Monday that the profitability of companies had increased with the rationalising of Goods and Services Tax (GST) rates which was an ongoing process.
The second half of last year saw a radical reworking of the items within the four-slab GST structure by the supremely federal institution of the GST Council, whereby all but 50 of over 1,200 items remained in the highest 28 per cent bracket. Those retained included luxury and sin items, the cess on which goes to fund the compensation to states for the loss of revenue arising from implementing GST.
“The GST Council is trying to further reduce the number of items in the 28 per cent slab. Going ahead, I see a further rationalising of rates within the structure and of the structure itseld,” Jaitley said.
“In my view, finally it will only be luxury items and demerit goods left in the highest slab,” he added.
The new indirect tax regime unifying the Indian market has four tax slabs of 5, 12, 18 and 28 per cent.
–IANS
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Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
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