List of tax exemptions to be phased out in few days: Minister

Finance Minister Arun Jaitley on Wednesday said the government in the next few days will bring out a list of tax exemptions to be phased out as part of the exercise to reduce corporate tax rate to 25 per cent in four years.

The minister also said measures to protect domestic steel sector from dumping by overseas manufacturers are being examined. Stating that every tax demand cannot be termed as tax terrorism, he said, the government will not relent on pursuing black money in India or abroad.

As regards his Budget announcement of reducing corporate tax rate to 25 per cent, Jaitley said, “Over the next few days, we will come out with list of exemptions, which we intend to phase out in the first place. Over the next four years corporate tax will come down by 5 per cent and lot of exemptions will get phased out”.

“Therefore slowly we will bring taxation levels to global standards and make taxation assessment and return simpler by just eliminating a lot of exemptions.”

The Finance Minister in his 2015 Budget had announced that the government would reduce the rate of corporate tax from 30 per cent to 25 per cent over the next four years to align the rates with competing countries.