Union Home Minister Amit Shah, on Saturday, held a meeting with the chief ministers of various BJP-ruled states. The meeting that was held at the BJP headquarters in New Delhi, came in with regards to the economic slowdown. BJP Working President J P Nadda, Union Finance Minister Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs, Anurag Thakur were present at the party headquarters during the meeting while various Chief Ministers participated in the meeting through video conference.
The meeting came just a day after Finance Minister Nirmala Sitharaman introduced cuts in Corporate taxes as part of the stimulus to help the economy recover from the ongoing slowdown. In a move that presented the government’s efforts towards introducing reforms for the nation and pleasantly surprised everyone, Sitharaman surpassed this and introduced an across-the-board rate of 22% for all domestic corporate taxpayers subject to the corporates not claiming any exemptions or incentives.
The Finance Minister said a domestic company which does not opt for the concessional tax regime due to existing exemptions or incentives will pay tax at the rate of 34.94% or 29.12%. In what seems like a good thing, in this case, these companies can opt for the concessional tax regime after the expiry of their incentives.
Additionally, an option to pay corporate tax at the rate of 15% is now provided to any new domestic company established post-October 1, 2019, and making fresh investment in manufacturing. It has been done with a focused view to boost manufacturing and to provide thrust to the ‘Make-in-India’ initiative of the government.
As per the government data, the economic growth of India presented a slowdown to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago. The slowdown has largely been attributed to a sharp dip in the manufacturing sector and agriculture output, the Ministry of Statistics and Programme Implementation had said in a statement.
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(With ANI Inputs)