Government proposes to give one more year to manufacturing companies proposing to start production from their new greenfield facilities and qualify for lower corporate tax rate of 15 per cent.
In September last year the Finance Minister Nirmala Sitharaman sprang a surprise and cut tax paid by companies on profits they earn to their lowest. She also introduced a new lower corporate tax rate of 15 per cent for new manufacturing firms, incorporated after October 1, 2019 and starting operations before March 31, 2023.
Sources in finance ministry said that a proposal is now being considered to give new companies intending to put up manufacturing facility in the country an extra year till March, 2024 to start operations. Such measure would help businesses affected by Covid-19 pandemic to better plan their investment and manufacturing operations