Bring down corporate tax to 18%: CII

New Delhi: Industry body CII has made a case for bringing down the corporate tax rate to 18 per cent along with elimination of all exemptions saying it will not result in any loss to the exchequer. The Modi 1.0 government had proposed to bring down the corporate tax rate from 30 per cent to 25 per cent gradually.

The government has already reduced it to 25 per cent for companies having turnover of less than Rs 250 crore. "We are supporting a reduction in taxes along with reduction in exemptions and a very simplified tax code. "Our numbers show that 18 per cent corporate tax along with zero exemptions could be revenue neutral. We would prefer to go in that kind of direction," CII President Vikram Kirloskar said.