Seeking a clear roadmap for reduction in corporate tax to 25 per cent, industry body Assocham today asked the government to remove the surcharge and cess which have pushed up the overall tax rate.
The chamber said the surcharge and education cess were originally introduced for a short period of time but are being continued from year to year.
“This has pushed up the overall tax rate sharply for the corporate sector to 34.6 per cent. The government (should) give a time schedule for withdrawal of the surcharge and education cess,” it said in a statement.
A clear road map will enable businesses to evaluate availability of funds for capital investments, it said.
“It would also help in giving more funds to the corporate sector for investment and growth and also generate confidence and certainty,” it added.
The chamber also said that the reduced tax rate of 25 per cent should also be made applicable for all companies and not only to manufacturing firms.
This move will provide a boost to start-ups and bring newly set-up manufacturing as well as non-manufacturing companies on an equal footing as far as tax rates are concerned, it said.