FM Deems Tax Cut-Off Extension on New Manufacturing Investments

New Delhi, India – With the Federal Government considering to ease strain on corporations, Indian Finance Minister Nirmala Sitharaman has said she is looking into availing a lower tax rate on new investments in manufacturing.

“I will see what can be done. We want industry to benefit from the 15% corporate tax rate on new investments and I take your point for considering an extension in the deadline of 31 March 2023," Sitharaman said.

She told the national executive committee members of the Federation of Indian Chambers of Commerce and Industry (FICCI) that the extension is to provide additional time to businesses for them to recover from the loss they have suffered in the more than two-month-long lockdown imposed with the view to curb the spread of Covid-19 pandemic.

The Government reduced corporate tax rates from a high of 30 percent to 22 per cent in September 2019. Firms that have not availed tax sops could opt for a 22% rate and new manufacturing companies that start production before March 2023 could opt for a 15% rate.

Sitharaman added that the recently announced emergency credit facility will not be limited to micro, small, and medium enterprises and can be availed by any business meeting the eligibility criteria.

Image source: Magic Wand Media

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