Amit Shah makes 'manufacturing hub' commitment after corporate tax cut

Home Minister Amit Shah on Friday congratulated PM Modi and Finance Minister Nirmala Sitharaman, following the government announced slashing of corporate tax to 22% for domestic companies. Taking to Twitter, Amit Shah said that the rationalisation of corporate tax, which had been a long-pending demand, has now become a reality. He added that the move will make India's corporates globally competitive and the Indian markets exciting for the potential investment. In another tweet, the Home Minister asserted that the government is committed to making India a big manufacturing hub, adding that with these announcements, the objective will be fulfilled soon. 

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PM Modi hails big tax cuts

On Friday, PM Modi also shared a detailed article highlighting key issues dealt in the new tax cut. He stated that the Centre has brought in the Taxation Laws (Amendment) Ordinance 2019 to amend Finance (No. 2) Act 2019, which was passed earlier in the Finance Session of the Parliament. Calling the tax cut historic, the Prime Minister also highlighted its positive effects. He also reiterated his government's efforts to accelerate the Indian economy's growth toward his $ 5 trillion dream.

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Big corporate tax cuts announced

The Central Government on Friday slashed the income tax rate for domestic companies by almost 10 percentage points to 25.17 percent and offered a lower rate to 17.01% for new manufacturing firms to boost economic growth rate from a six-year low by incentivising investments to help create jobs. Finance Minister Nirmala Sitharaman said that the reduction in tax rates has been done by promulgating an ordinance to an amendment to the Income Tax Act.

"In order to promote growth and investment, a new provision has been inserted in the Income Tax Act, with effect from financial year 2020. It will allow any domestic company an option to pay income tax at 22 per cent subject to the condition that they will not avail any exemption or incentives," she told reporters.

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(With PTI inputs)