Corporate tax cut historic: PM
NEW DELHI: Prime Minister Narendra Modi on Friday termed as "historic" the cut in corporate tax rates and asserted that economic announcements made in the last few weeks show that his government is leaving no stone unturned to make India a better place to do business.
The announcements in the last few weeks clearly demonstrate that the government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society and increase prosperity to make India a USD 5 trillion economy, he said on Twitter
"The step to cut corporate tax is historic. It will give a great stimulus to #Makeinindia, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians," he said.
Battling a six-year low economic growth and a 45-year high unemployment rate, the government on Friday slashed corporate tax rates for companies by almost 10 per cent to 25.17 per cent to bring them at par with Asian rivals such as China and South Korea, as it looked to boost demand and investments.
Meanwhile, Union Home Minister Amit Shah said the Modi government was committed in making India a big manufacturing hub and the slashing of corporate tax rates would make the country's markets "much more exciting" for potential investors.
Shah also said "rationalisation" of corporate tax had been a long-pending demand which has now become a reality.
"Modi government is committed to making India a big manufacturing hub and this decision along with previous announcements on relaxing FDI will go a long way in realising this objective. I congratulate PM @narendramodi and FM @ nsitharaman for announcing these bold measures," he tweeted.
The home minister also said this move will make India's corporates globally competitive and the country's markets much more exciting for potential investors.
Finance Minister Nirmala Sitharaman announced the fiscal measures that will cost the government Rs 1.45 lakh crore in revenue annually and may potentially derail the country's fiscal deficit roadmap.