The authorities is estimated to have forgone round ₹99,000 crore in revenue in the 2023-24 fiscal on account of tax incentives prolonged to corporates, Minister of State for Finance Pankaj Chaudhary stated on Tuesday (July 22, 2025).
Corporate tax charges have been regularly diminished since 2016 whereas phasing out the exemptions and incentives.
In a written reply in the Rajya Sabha, Chaudhary gave the estimated revenue forgone because of the tax incentives by the use of numerous deductions in company tax, from FY 2019-20 to 2023-24.
The company tax revenue foregone in 2023-24 stood at ₹98,999, adopted by ₹88,109 crore and ₹96,892 crore in 2022-23 and 2021-22, respectively.
In 2020-21 and 2019-20, the whole company tax revenue foregone was ₹75,218 crore and ₹8,043 crore respectively.
The minister was replying to a query from AAP MP Raghav Chadha on the estimated loss to the exchequer because of the company tax reductions from 2019-20 to 2024-25, and for the monetary 12 months (2024-25).
Estimated revenue foregone for the monetary 12 months 2024-25 until date is just not obtainable, Chaudhary stated.
Through Finance Act, 2016, the company tax charges had been diminished to 29% of the whole revenue to advertise progress, increase funding and create extra job alternatives.
In 2017, the company tax charges had been diminished to 25% of the whole revenue, make smaller home corporations having annual turnover of ₹50 crores extra viable and to encourage corporations emigrate to firm format.
In September 2019, the federal government introduced a minimize in base company tax for then present corporations to 22% from 30%; and for brand new manufacturing corporations, included after October 1, 2019, to fifteen% from 25%, supplied they forego all exemptions and incentives.
Vide Finance Act, 2024, tax charges on the revenue of overseas corporations (apart from that chargeable at particular charges) have been diminished from 40% to 35% to advertise funding and employment.
