New Delhi: Making a strong case for reduction in the corporate tax rate to 25 %, a Ficci-PwC study has said that companies have to pay about 24% taxes.
“The study has led us to (the) conclusion that (the) corporate tax rate should not be more than 25% and dividend distribution tax not more than 10% ... (the) tax burden is too high,” Ficci secretary-General Amit Mitra said while releasing the survey jointly conducted by the industry chamber and global tax consultant PricewaterhouseCoopers.
Companies pay up to 16% of their turnover as taxes, according to the report.
The survey will help support a constructive dialogue between the government and industry regarding the future shape and competitiveness of the Indian tax system, said PwC executive director Ketan Dalal.
The average tax rate (TTR) of the 41 companies that participated in the survey is about 35.9% of their profits, the survey said.