Government stuck to its word reducing corporation tax rates to 30 percent as promised in its 2002 budget.rn
rnCompanies with a taxable income of over Rs. 5 million a year will qualify for the new tax rate.rn
rnCompanies with taxable income of less than Rs. 5 Mn will continue to be taxed at 20 per cent.rn
rnHowever half the monies saved by the corporates will have to be channelled to a human resource endowment fund for tertiary education and vocational training.rn
rnThe government hopes to collect a billion rupees into the fund next year from the Rs. 2 billion companies will save.rn
rnThe human resource endowment fund will be managed through a public private partnership the fund will also provide vouchers to students for tertiary education.rn
rnThe government is also pitching in with a billion rupees of its own to buy the equipment to get the fund off the ground.