PM Modi on appreciating Corporate Tax cut announcement, calls the move “Historic”
Prime Minister Narendra Modi on Friday appreciated his government corporate tax cut announcement and called the move historic.
Taking social media as a vital platform he tweeted ‘Announcements in the last few weeks by the Centre clearly showed that the government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society & increase prosperity to make India a $5 Trillion economy.’
“The step to cut corporate tax is historic. It will give a great boost to Make in India, 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”, PM Modi tweeted, hours after Finance Minister Nirmala Sitharam announced tax bonanza for corporates.
Union Home Minister Amit Shah also welcoming the move said “Rationalization of corporate tax had been a long pending demand, which is now a reality. This move will make our corporate globally competitive and our markets much more exciting for potential investors”.
The effective tax rate for these companies would now be 25.17% inclusive of surcharge and cess. Also, such companies shall not be required to pay Minimum Alternate Tax (MAT).
The total revenue taken for the reduction in corporate tax rate and other relief is estimated at Rs 1,45,000 crore.
This is the biggest announcement so far by the Modi government to fight the slowdown, which dragged down the GDP growth to a six-year low of 5% in the April-June quarter of the current fiscal.
“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 realizing this objective. I congratulate PM
Narendra Modi and FM for announcing these bold measures”, tweeted Shah.