New Delhi: The government on Monday lowered the corporate tax for new manufacturing units at 25 per cent with a view to promote industrial activity and generate jobs.

With regard to small units having a turnover of Rs 5 crore, the corporate tax rate has been reduced from 30 per cent to 29 per cent, Finance Minister Arun Jaitley said in the Budget 2016-17 tabled in the Lok Sabha. This is a part of exercise to bring down corporate tax rate in a phased manner from the existing 30 per cent to 25 per cent over a period of four years beginning next fiscal.