Corporate tax rates slashed

The government has proposed to cut the tax rate for one-person companies (OPCs) from 25 per cent to 22.5 per cent in order to attract investment in the private sector.

The finance minister also placed a proposal to bring down the tax rate for non-listed companies to 27.5 per cent from 30 per cent.

The rate for the listed companies, which have issued shares worth more than 10 per cent of their paid-up capital through initial public offerings, has been proposed at 20 per cent in place of the existing 22.5 per cent.

The rate would be 22.5 per cent for the listed firm that has floated shares equivalent to 10 per cent or less of its paid-up capital. The tax rate would be 25 per cent instead of 22.5 per cent if companies fail to meet conditions.