India Inc is going gaga over Nirmala Sitharaman’s corporate tax cuts
- Finance Minister
Nirmala Sitharamanannounced a big boost for businesses by slashing corporate tax.
- Business leaders across the country took to Twitter to rejoice the move.
- Sensex posted its sharpest single-day gain in over a decade.
A domestic company can pay income tax at 22% if they don’t seek any exemption or incentives and inclusive of surcharge, the effective tax on Indian firms will be 25.17%.
Read: The top tax changes announced by Finance Minister Nirmala Sitharaman here
With the current economic slowdown which had gripped the Indian business community, the recent announcement brought in the festive season early. Sudhir Kapadia, partner at EY, put these changes in India at par with the sweeping cuts announced by Donald Trump in 2017 after he took over the President of the United States.
Here’s how Indian business leaders cheered the Finance Minister’s latest Friday announcement.
Kiran Mazumdar Shaw, Chairperson and managing director, Biocon said that this move will revive growth and investment in India.
Corporate Tax Rate Cut From 30% To 25.2% To Spur Growth- this is a great move which will firmly revive growth n inv… https://t.co/ga33FThwlD— Kiran Mazumdar Shaw (@kiranshaw) 1568959900000
Harsh Goenka, chairman of RPG Enterprises called it a ‘Virat’ cut from the government.
Landmark move by FM Sitharaman giving the biggest booster to business and economy. As India looks to become a globa… https://t.co/YNCS2Irtr1— Harsh Goenka (@hvgoenka) 1568966173000
Uday Kotak, chairman of Kotak Mahindra, called it a bold and progressive move.
Reducing corporate tax rate to 25% is big bang reform. Allows Indian companies to compete with lower tax jurisdicti… https://t.co/xpEpTuURAK— Uday Kotak (@udaykotak) 1568960582000
Hedge fund manager Samir Arora also seemed to be ecstatic about the move.
This is not bigger than budget, this is bigger than last 20 budgets.— Samir Arora (@Iamsamirarora) 1568959335000
Hitesh D Gajaria, head of tax at consulting firm KPMG too praised the government’s decision
#DreamCorporateTaxRates! Well Done India! Well Done @nsitharaman @nsitharamanoffc @narendramodi @FinMinIndia… https://t.co/vLDqcQYyk7— Hitesh D Gajaria (@gajaria) 1568961486000
India cuts corporate tax rates to end the economic spiral and unleash the market's animal spirits
India offers a big incentive for Indian startups as well as industries to invest in the future