Proposed Direct Tax Code to give relief to corporate tax payers

The government today proposed to retain corporate tax at 30 per cent, but without the surcharge and cess that increase the current levy to over 33 per cent. The current tax rate for domestic companies, including surcharge and cesses, comes to about 33.22 per cent, while foreign companies pay over 40 per cent.

The bill sought to levy the same corporate tax rate on domestic and foreign companies.

Tax experts said the proposal in the Direct Taxes Code (DTC) Bill tabled in the Lok Sabha today will provide much- needed relief to the industry and bring the levy on par with global standards.

However, they wanted the corporate tax rate to be even lower at 25 per cent, as was proposed in the first draft of the Direct Tax Code Bill.