IJFANS International Journal of Food and Nutritional Sciences

ISSN PRINT 2319 1775 Online 2320-7876

Analysing the Influence of Corporate Tax Rates on Business Profitability

Main Article Content

Dr. CA Ojha S M

Abstract

The present study examines the complex patterns of three discrete industries - Manufacturing, Information Technology (IT), and Fast Moving Consumer Goods (FMCG) - in order to examine the complex impact that numerous factors have on the profitability of a business. Employing regression analysis as the primary methodological approach, the research explores the significance of independent variables such as Corporate Tax Rates, GDP Growth, Cost of Borrowing, and other industry-specific metrics. In the Manufacturing sector, the research reveals that corporate taxes and the expense of financing have a significant effect on earnings. These findings underscore the sector's vulnerability to fiscal and financial factors, guiding stakeholders towards informed decision-making in tax planning and financial management. The IT industry analysis reveals the intricate relationship between profitability and variables such as Corporate Tax Rates, Cost of Borrowing, and the pivotal role of Employee Skills and Education Level. This highlights the nuanced interplay between financial considerations and human resource management within the IT sector. Turning attention to the FMCG industry, the study emphasizes the relevance of Corporate Tax Rates and Purchasing Power in shaping profitability. Understanding the delicate balance between tax implications and consumer economics provides strategic insights for FMCG stakeholders seeking to optimize financial outcomes. Across all industries, the rejection of null hypotheses in favour of at least one significant independent variable underscores the industry-specific nature of profitability determinants. This exhaustive study not only enhances scholarly comprehension but also provides practical recommendations for lawmakers as well as business professionals. The study aims to guide strategic decision-making, fostering resilience and sustainability in the face of diverse economic landscapes within Manufacturing, IT, and FMCG industries.

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