In another press conference to boost the economy, Union Finance Minister Nirmala Sitharaman proposed to slash corporate tax for domestic consumers and new domestic manufacturing consumers.
The latest announcement has been made in the wake of the crisis in the economy when the GDP stands at 5 per cent. This is the fourth time that Sitharaman announced a few more reforms in the economy.
The finance minister focuses on four major parameters including industrial production, inflation, FDI inflows and investment. One of the big announcements has been the cutting down of corporate tax to boost employment and economic activity which has been slashed to 22 per cent for domestic companies. Earlier the tax rate stood at 30 per cent.
Let’s take a look at what our corporates have to say on the landmark move:
Biocon Chairperson and Managing Director Kiran Mazumdar Shaw appreciated the move saying it will help revive growth and investment. Lauding the Finance Minister, she called it a much-needed move.
Corporate Tax Rate Cut From 30% To 25.2% To Spur Growth- this is a great move which will firmly revive growth n investment. My hats off to FM @nsitharaman for this bold but most needed move. https://t.co/yhvJ9IcMmm
— Kiran Mazumdar Shaw (@kiranshaw) September 20, 2019
Calling it a landmark move, RPG enterprises chairman Harsh Goenka said the move could be a huge game-changer in times of global uncertainty. He added that the move will make India a global manufacturing hub. He asserted that the move will encourage more private investment.
‘Virat’ cut by FM #Corporatetax. Much needed boost to unleash ‘animal spirits’. I now expect the sentiment to change and private investments to start flowing. Sensex ‘boom’rah!
— Harsh Goenka (@hvgoenka) September 20, 2019
Landmark move by FM Sitharaman giving the biggest booster to business and economy. As India looks to become a global manufacturing hub – this could be a huge game-changer in times of global uncertainty. Truly showing that the Government knows best!#MarketsRejoice #IndiaRising
— Harsh Goenka (@hvgoenka) September 20, 2019
Another positive response came in from Gautam Adani, who welcomed the move asserting that reducing the corporate tax and MAT will infuse confidence in the economy. Amid the challenging times, the move will also address the core challenge of liquidity reinstating India as an attractive investment destination, added Adani group chairperson.
This is a welcome move by Hon’ble #FinanceMinister. Amidst these challenging times, the reduction in corporate tax & MAT will infuse confidence in the economy. It also addresses the core challenge of liquidity reinstating India as an attractive investment destination.
— Gautam Adani (@gautam_adani) September 20, 2019
Kotak Mahindra CEO Uday Kotak called it a bold and progressive step forward to boost the economy. He said with the reduction of tax, India will compete with lower tax jurisdictions like the US and added that the move signals the Indian government’s commitment to economic growth and tax abiding companies.
Reducing corporate tax rate to 25% is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the U.S. It signals that our government is committed to economic growth and supports legitimate tax abiding companies.A bold, progressive step forward.
— Uday Kotak (@udaykotak) September 20, 2019
Mohandas Pai, chairman at Aarin Capital also welcomes the move calling it revolutionary. Meanwhile, Prime Minister Narendra Modi also lauded the move calling it a historic move.
He added the step will give a great stimulus to MakeInIndia initiative and attract private investment from across the globe along with improving the competitiveness in the private sector. Calling it a win-win situation, PM Modi said there will more jobs in the market with reduction of corporate tax.
