No major gain for telecom sector from corporate tax rate cut: COAI

NEW DELHI: The government’s move to lower corporate tax to 22 per cent is positive for the economy but there is no major benefit for the stressed telecom sector, according to industry body Cellular Operators Association of India. In the fourth tranche of post-budget economic stimulus measures, Finance Minister Nirmala Sitharaman cut base corporate tax for existing companies to 22 per cent from the current 30 per cent; and for new manufacturing firms, incorporated after October 1, 2019 and starting operations before March 31, 2023, to 15 per cent from the current 25 per cent.

This will be subject to the condition that these companies will not avail any other incentive or concession such as tax holiday enjoyed by units in special economic zones (SEZs) and accelerated depreciation.