The Paradox of MAT post Union Budget 2026

Is this a case of Promissory Estoppel No more. Minimum Alternate Tax (MAT) was conceived as a limited corrective to an incentive heavy corporate tax system, justified primarily as a timing adjustment rather than a permanent levy. Union Budget 2026 marks a quiet but consequential departure from this foundational logic by recasting MAT as a terminal tax, restricting credit utilisation and using its design to steer corporate behaviour. This note by J the app examines whether MAT can still be normatively and legally defended in a tax regime that claims neutrality, base broadening and simplicity, and questions whether its continued existence reflects sound policy design.