Cut in corporate tax rate important for investments: CEA Subramanian

Chief Ecomic Adviser KV Subramanian on Friday said that government recognised need to cut corporate tax to boost investments.

For last few quarters cycle of growth has t been as it was earlier, he said at an event here and added that "corporate tax rate is important for investments".

India's ecomy grew at 5 per cent in first quarter of 2019-20 -- slowest pace in over six years.

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second-quarter GDP number is scheduled to be anunced later today.

government has undertaken a number of measures to arrest growth slowdown. In September, it anunced a cut in corporate tax rate to 22 per cent from 30 per cent.

It also lowered tax rate for new manufacturing companies to 15 per cent to attract new foreign direct investments. 

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