Reliance Industries Ltd.’s corporation tax payment in 2020-21 – a year clouded by the Covid 19 pandemic – fell by more than half, according to Chairman Mukesh Ambani’s annual address to shareholders.
Ambani usually spends the first part of his general meeting speech outlining his company’s contribution to the Indian economy as evidence of its greatness.
The oil-to-telecom conglomerate paid Rs 3,213 billion in corporate tax in FY21, Ambani said in his speech at the 44th annual general meeting. That is 61.6% less than in the previous year.
RIL’s consolidated sales decreased 18.3% to Rs 5.39 lakh crore during the year. However, the annual profit increased 34.8% to Rs 53.739 billion.
In fact, RIL’s corporate tax contributions have never been this low since at least fiscal 2015 – when Ambani first started reporting the amount his company paid that year. The amount paid in FY21 is also 66% below the average for the last five fiscal years.
In 2019, the union government cut corporate tax rates for existing and new businesses.