Ficci-PwC pitches for reduction in corporate tax

Making a strong case for reduction in the corporate tax rate to 25 per cent, a Ficci-PwC study has said that companies currently pay about 24 taxes. "The study has led us to the conclusion that the corporate tax rate should not be more than 25 per cent and dividend distribution tax not more than 10 per cent ... 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 per cent 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 per cent of their profits, the survey said.