ONKAR SINGH / NEW DELHI
Captains of Industry and Trade have welcomed the slashing of corporate tax by about ten per cent saying that it will give a big boost to the economy and make Indian Industry more competitive globally. The Federation of Indian Chambers of Commerce and Industry, FICCI said the tax reliefs will certainly prove to be a much-needed booster in tackling the current slowdown and regaining the growth momentum.
FICCI President Sandip Somany said lowering of income tax on corporates had been a longstanding FICCI request. Hailing the announcement, Confederation of Indian Industries, CII Director General Chandrajit Banerjee said, the Government has fulfilled the demand of the industry which will make it more competitive globally.
ASSOCHAM Secretary General Deepak Sood welcomed the move saying this will not only give a boost to the domestic economy, but also attract foreign investors to invest in India. Finance Minister Nirmala Sitharaman yesterday announced reduction in corporate tax rate to 25.17 per cent from the current 30 per cent, to bring them on par with Asian rivals such as China and South Korea, hoping to boost demand and investments.
Briefing media about the decision in Goa, Finance Minister said to attract fresh investment in manufacturing and to give a boost to ‘Make-in-India initiative, another new provision has been ed in the Income-tax Act with effect from current fiscal. It allows any new domestic company incorporated on or after 1st of October 2019 making fresh investment in manufacturing, an option to pay income-tax at the rate of 15 per cent.
Prime Minister Narendra Modi hailed the decision terming it as historic one. In a tweet, he said, it will give a great stimulus to Make In India, attract private investment from across the globe, improve competitiveness of the private sector, create more jobs and result in a win-win for 130 crore Indians.