'Reduce current rate of corporate taxes which is 33%'

By Kumar Binit

"We expect the government to reduce the current rate of corporate taxes which is 33% to solve the issue of cash flows for start-ups once and for all. For a start-up to thrive, it is very necessary that the government realizes that lesser the tax imposed on it, more are the chances of the start-up going ahead and carry on with its activities towards a brighter and profitable future. We all know how India has risen through the ranks to jump 23 positions and attain a rank of 77 when it comes to ease of doing business. The next jump for India will come only when it will create a climate whereby young businessmen will be encouraged to take greater risks financially without worrying about losses. This will happen only when corporate taxes are levied smartly and not blindly.
Bringing a law like 'Section 138' that protects the interests of new Fintech Lending start-ups. As of now, there are no strong laws through which a private financial start-up can take action against defaulters. For a start-up like us whose main source of revenue earning is interest on EMIs, failing to recover the same legally will discourage us from going on with the business. This way, many Fintech start-ups might disappear even before gaining any ground. So at present, a tough law that helps Fintech start-ups to recover their money is very important and inevitable.
Drawing a line of difference for taxes imposed on listed companies and start-ups. The government should be able to differentiate between the revenue generated by a start-up and a listed company before going ahead with imposing the same taxation policy for both. It would be wrong to tax a start-up the same away as a listed company whose revenue is almost 90% more than the former. After all, a motivated start-up will move at a faster towards becoming a giant business one day."

The author is CEO of MoneyLoji


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