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 progressively decreased since 2016 whereas phasing out the exemptions and incentives.
In a written reply in the Rajya Sabha, Chaudhary gave the estimated revenue forgone as a result of tax incentives by means 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 full 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 as a result of company tax reductions from 2019-20 to 2024-25, and for the monetary yr (2024-25).
Estimated revenue foregone for the monetary yr 2024-25 until date will not be accessible, Chaudhary stated.
Through Finance Act, 2016, the company tax charges had been decreased to 29% of the full earnings to advertise development, increase funding and create extra job alternatives.
In 2017, the company tax charges had been decreased to 25% of the full earnings, make smaller home firms having annual turnover of ₹50 crores extra viable and to encourage companies emigrate to firm format.
In September 2019, the federal government introduced a minimize in base company tax for then current firms to 22% from 30%; and for brand spanking new manufacturing companies, included after October 1, 2019, to fifteen% from 25%, supplied they forego all exemptions and incentives.
Vide Finance Act, 2024, tax charges on the earnings of overseas firms (aside from that chargeable at particular charges) have been decreased from 40% to 35% to advertise funding and employment.
