Assocham in a pre-Budget memorandum to Finance Minister Pranab Mukherjee on 29 December 2010 recommended the Finance Ministry to reduce corporate tax to 25% from the existing rate of 30% so that India Inc is left with more money to make big-ticket investments. The reduction in corporate tax will result in generating more surpluses in the hands of companies and thus the investments will growth. Assocham believes that liberalised taxation regime has been a long-pending demand of the corporate sector. Assocham is of the opinion that reduction of corporate tax rate to 25% would bring the tax regime in the country at par with that of developed Western nations as well as make the country's corporate sector more competitive globally.
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