New Delhi, August 20: A government panel, headed by Central Board of Direct Taxes (CBDT) member Akhilesh Ranjan, has reportedly recommended a major tax overhaul in its report to the Finance Ministry. The committee has asked Finance Minister Nirmala Sitharaman to cut corporate tax on all companies from 30 per cent to 25 per cent, reports citing sources said on Tuesday.

The report, which was submitted to the North Block on Monday, is yet to be revealed to the public. The spokesperson of Finance Ministry, on being asked by reporters to verify whether the slashing of corporate tax rate has been recommended, declined to comment. Income-Tax Department Issues 17-Point Checklist to Trace Unaccounted Demonetisation Cash

"The committee has said the government should move away from surcharges on income and reduce corporate tax to 25 per cent," Reuters quoted the government source as saying on the condition of anonymity.

Notably, Sitharaman, while announcing the first Budget after Prime Minister Narendra Modi returned to power, had rolled out a reduction in corporate tax rate to 25 per cent for companies with annual sales upto Rs 400 crore.

The government panel has, however, recommended the relief to all companies, irrespective of the volume of their sales and the quantum of turnover per year. The proposal comes amid an ongoing economic slowdown, which has most severely affected the automobile sector.

The committee which has pitched the bold overhaul in relation to taxes, was formed in 2017 with the goal of aligning India's tax policy in accordance to the best practices among major economies across the globe.

If the proposal is accepted by the Finance Ministry, an announcement on the corporate tax rate cut would be made in the Union Budget for the financial year 2020-21. Sitharaman's team, however, would further hold wide consultations within the government before including the recommendation in the list of government's Budget proposals.

(The above story first appeared on LatestLY on Aug 20, 2019 03:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).