Corporate tax revenue foregone at ₹99,000 crore in FY24: MoS Finance

The government is estimated to have forgone around ₹99,000 crore in revenue in the 2023-24 fiscal on account of tax incentives extended to corporates, Minister of State for Finance Pankaj Chaudhary said on Tuesday (July 22, 2025).

Corporate tax rates have been gradually reduced since 2016 while phasing out the exemptions and incentives.

In a written reply in the Rajya Sabha, Chaudhary gave the estimated revenue forgone due to the tax incentives by way of various deductions in corporate tax, from FY 2019-20 to 2023-24.

The corporate tax revenue foregone in 2023-24 stood at ₹98,999, followed by ₹88,109 crore and ₹96,892 crore in 2022-23 and 2021-22, respectively.

In 2020-21 and 2019-20, the total corporate tax revenue foregone was ₹75,218 crore and ₹8,043 crore respectively.

The minister was replying to a question from AAP MP Raghav Chadha on the estimated loss to the exchequer due to the corporate tax reductions from 2019-20 to 2024-25, and for the financial year (2024-25).

Estimated revenue foregone for the financial year 2024-25 till date is not available, Chaudhary said.

Through Finance Act, 2016, the corporate tax rates were reduced to 29% of the total income to promote growth, boost investment and create more job opportunities.

In 2017, the corporate tax rates were reduced to 25% of the total income, make smaller domestic companies having annual turnover of ₹50 crores more viable and to encourage firms to migrate to company format.

In September 2019, the government announced a cut in base corporate tax for then existing companies to 22% from 30%; and for new manufacturing firms, incorporated after October 1, 2019, to 15% from 25%, provided they forego all exemptions and incentives.

Vide Finance Act, 2024, tax rates on the income of foreign companies (other than that chargeable at special rates) have been reduced from 40% to 35% to promote investment and employment.