Mumbai:
CRISIL Research on Sunday said top 1,000 listed companies could see tax savings of Rs 37,000 crore on account of the corporate tax cut.
"Over the past few days, a slew of measures have been introduced to address the slowdown in the Indian economy. Friday's announcement, however, is the most material…Our analysis indicates these 1,000 companies could see tax savings of Rs 37,000 crore, or nearly a fourth of the total savings anticipated by the government," it said in a statement.
The drop in tax rate would now bring India at par with most Asian economies, it added.
"CRISIL Research's analysis of nearly 1,000 companies — spread across 80+ sectors such that they cover more than 70 per cent of NSE's market capitalisation — indicates that effective tax rates had risen over the past 5 years," it said.
These companies, including oil & gas and financial services, account for nearly a third of the tax paid by India Inc.
"These estimates are based on profit before tax for fiscal 2019. Given that we expect 5-6 per cent growth in India Inc revenues and Ebitda (earnings before interest, tax, depreciation and amortisation) for this fiscal, the savings could end up a tad higher," it added.
In a major fiscal booster, the government on Friday slashed effective corporate tax to 25.17 per cent, inclusive of all cess and surcharges for domestic companies.