In a major fiscal booster, Finance Minister has slashed effective corporate tax to 25.17 percent inclusive of all cess and surcharges for domestic firms. Union Minister Nitin Gkari who has always been appreciative of FM's decisions hailed this move.

Extolling decision by Finance Minister Gkari said that this anuncement will work as a 'Growth Engine'. new tax rate will be applicable from current fiscal which began on April 1.

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Nitin Gkari heaping praises over FM's fiscal booster decision

Terming decision of slashing down corporate tax 'Historic', Gkari furr stated, "This will increase confidence of investors and industry and it will prove very important in realizing  5 trillion ecomies." 

Sitharaman said revenue foregone on reduction in corporate tax and or relief measures would be Rs 1.45 lakh crore annually. This, she said, is being done to promote investment and growth. In effect, corporate tax rate will be 22 per cent for domestic companies if y do t avail of any incentive or concession. changes in Income Tax Act and Finance Act will be me effective through an ordinance.

Gkari also said that better results would come from this decision.

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Society of Indian Automobile Manufacturers (SIAM) lauds move

SIAM President Rajan Whera said reduction in corporate tax rate and or anuncements me by Finance Minister Nirmala Sitharaman would help give a boost to local manufacturing in sector.

Whera said in a statement said that " reduction of corporate tax to 15 per cent for new companies making fresh investments from October 1, 2019, will support investment and also FDI in auto sector. This is expected to give a big boost to Make in India for automobile industry."

Expansion of scope of CSR (corporate social responsibility) expenditure to include incubation centres and R&D activities will also help with expenditure in automobile sector, he ded.

"All se set of fiscal measures are expected to uplift market sentiments and improve demand for automobiles," Whera said

RE | Corporate tax slashed down to 25.17 pc for domestic companies

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(With Inputs from PTI)