Finance Minister of India, Nirmala Sitharaman, as a recent measure to boost the economy, announced rate cuts in the corporate taxes and let forgo about 1.45L crore to government’s exchequer. This move has been widely accepted and appreciated by the people around the Indian business sector and academia. The who's who of India Inc have called the introduction of the cuts as a 'bold move', 'progressive step', 'much-needed booster-does'. The corporate tax was reduced by 10% points to 22% thus making the effective corporate tax around 25.17%. Along with this, Nirmala Sitharaman has also provided relief to companies that continue to avail exemptions and incentives by reducing the rate of Minimum Alternate Tax (MAT) from 18.5% to 15%.
Kiran Mazumdar Shaw, the Chairperson and Managing Director of Biocon, a Biopharmaceuticals enterprise, took to Twitter to call the measure as a 'great move'.
The CEO, Kotak Mahindra Bank, Uday Kotak, on the other hand, called this move by Sitharaman as a 'progressive one'.
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
The Federation of Indian Chambers of Commerce & Industry’s president, Sandeep Somany also said that the measure will be a 'much-needed booster-does' for the economy.
The tax reliefs announced by FM Ms @nsitharaman will certainly prove to be a much-needed booster dose in tackling the current slowdown & regaining the growth momentum. Lowering of income tax on corporates is a longstanding FICCI request: Mr Sandip Somany, President, @ficci_india. pic.twitter.com/r5VFvlG0r5— FICCI (@ficci_india) September 20, 2019
The Partner and Head of Tax of Tax at KPMG said that Corporate tax cut is a 'hugely positive step'. His company also appreciated the move.
#DreamCorporateTaxRates! Well Done India! Well Done @nsitharaman @nsitharamanoffc @narendramodi @FinMinIndia @PMOIndia @narendramodi_in— Hitesh D Gajaria (@gajaria) September 20, 2019
Now the logical follow through - Shift Dividend Tax Burden to Shareholders. Free Indian Corporates to Invest More! Massive Fillip to Positivity!
Through this action, the Government has recognised the need to make Indian companies globally competitive. The slashing of headline #corporatetax rate to 22% is revolutionary: Hitesh D. @gajaria, Partner & Head of Tax, @KPMGIndia. pic.twitter.com/ZpKvTBt0qX— KPMG India (@KPMGIndia) September 20, 2019
The Commerce and Industry Minister, Piyush Goyal, on Friday, supported Nirmala Sitharaman’s introduction of the tax cut and said that this measure will give a necessary fillip to the economy. He said at an event that, “Finance Minister's announcement on slashing corporate tax will give necessary fillip to the economy which we've been hoping for. We have had a series of measures and today's measures are the largest." He also added that the foregone revenue of ₹1.45L crores will benefit corporates. Piyush Goyal was hopeful that, businesses will be able to take benefit of these measures to spur growth. “These measures will help in making India a better investment destination. The announcement on tax will help companies like Coal India, Infosys, and Wipro,” he said.