Indian companies seek re-introduction of 15% manufacturing tax rate in FY27 Budget.

• Indian companies seek re-introduction of a 15% concessional corporate tax rate for new manufacturing units in the upcoming FY27 Budget.
• The special tax incentive under Section 114BAB, which offered a 15% rate, expired on March 31, 2024.
• Introduced in 2019, this policy aimed to boost manufacturing investments and support the 'Make in India' initiative.
• Experts highlight the incentive's role in attracting investments, creating jobs, and simplifying the tax regime.
• The government had previously extended the scheme due to COVID-19 but allowed it to lapse, possibly viewing it as an interim measure.

Why It Matters: India's manufacturing future hinges on reintroducing key tax incentives.