Corporate tax rate for companies with an annual turnover of more than Rs 400 crore will be cut gradually to 25 per cent, said Finance Minister Nirmala Sitharaman on Monday, as she highlighted the government's commitment to "wealth creators".
Sitharaman, in her Budget speech on July 5, had cut corporate tax for companies with an annual turnover of up to Rs 400 crore to 25 per cent from 30 per cent earlier.
Arun Jaitley, as finance minister last year, had cut the corporate income tax rate to 25 per cent for companies with a turnover of up to Rs 250 crore.
Sitharaman, who was speaking at an industry event in Delhi, said the tax reduction for the rest of corporates would be gradual. She did not give a timeframe for the reduction.
Echoing Prime Minister Narendra Modi's Independence Day speech, she said Indian wealth creator entrepreneurs will be given all kind of support.
Modi had in his annual Independence Day address to the nation on August 15 had extolled the role of wealth creators and said they must not be viewed with suspicion.
"Let us never see wealth creators with suspicion. Only when wealth is created, wealth will be distributed," he had said. "Wealth creation is absolutely essential. Those who create wealth are India's wealth and we respect them."