Prime Minister Narendra Modi on Friday-lauded Finance Minister Nirmala Sitharaman’s
step to make corporate tax as historic calling it a win 130crore Indians Modi
“The step to cut the corporate rate is historic. To give a great incentive to #MakeInIndia, attract private property from across the globe,
improve the competitiveness of our private sector, create more jobs and result in a win 130crore Indians Modi,”
the PM tweeted soon after the Finance Minister stated steps to lift the sagging economy.
“The items in the last few weeks show that our government is leaving no stone unturned to make India a safer place to do business,
improve events for all parts of society and increase prosperity to make India a $5 Trillion economy,” the PM wrote in two tweets.
Friday’s decision was the latest in a slew of measures announced by the government in the past few weeks.
To give a booster dose to growth that has fallen to a six-year low of 5% in the June quarter. The Indian economy has been experiencing weak consumer demand with car sales.
in the world’s whole four automobile market I am falling 41 per cent in August, the most severe monthly fall on record.
Announcing cutting taxes, Sitharaman told reporters that the effective corporate tax rate would be lowered to around 25% from 30%,
which she said would put it on par with Asian peers.
Starting from the current fiscal year, any private company has the
“option to pay income-tax at the rate of 22%” as long they do not seek any special-tax incentives,
the minister stated in the western city of Panaji, where leaders are also thinking of lowering sales tax on 20 to 25 products.
The effective corporate tax rate for companies will be around 25%, inclusive of taxes, she said.
She lowered sufficient corporate tax further for domestic firms incorporated on or after Oct. 1 to 17%, with the condition that they begin production by March 2023.