Union Budget 2015: FM Arun Jaitley says corporate tax to be cut to 25 per cent

The govenrment will reduce corporate tax from the current 30 per cent to 25 per cent over four years, with a view to boosting spending and job creation, Finance Minister Arun Jaitley said on Saturday.

Jaitley presented the new government's maiden full-year Budget in the Lok Sabha on Saturday.

The country's corporate tax of 33.99 per cent, including various surcharges over the base rate, was higher than Asia's average corporate tax rate of 21.91 per cent in 2014, and a global average of 23.64 per cent, according to consultant KPMG.

Some local companies had hoped that the Budget would reduce their tax liabilities to help them kickstart investments badly hit by the slowdown in the domestic economy in the last couple of years.

(Reuters)