UP Chief Minister Yogi Adityanath on Sunday backed the Centre's decision to cut down the corporate tax rates and said that it will contribute to India's aim of becoming a $5 trillion economy. He also claimed that Uttar Pradesh will be a $1 trillion economy by 2024.

"The decision to slash corporate tax rates will pave the way for India to become a $ 5 trillion economy and Uttar Pradesh to be a $ 1 trillion economy by 2024," Adityanath informed the media.

"The relief given to the Corporate sector in terms of tax rebates by the Union Government is a historic decision. Previous Corporate tax rate of 30% has now been reduced to 22%. This means that companies will have more money and greater investment opportunities, leading to employment creation and higher growth," Yogi Adityanath said.

'Investments now coming to India'

Yogi Adityanath further highlighted the trade sanctions imposed by the United States which have led to a hike in custom tariffs on Chinese goods, which has increased their prices.

"Around 80 per cent American supply chain companies and 67 per cent European companies have been displaced from China," he said.

Due to the increasing cost of labour in China, multiple companies are moving to different countries. This is leading to the investments getting diverted towards India that earlier went China's way.

'No negative impact on revenue collection'

UP CM Yogi Adityanath also praised the Union Government's move to merge public sector banks (PSBs). He said that the Central government has taken important decisions on the merger of banks. The number of banks in the country will now be limited to 12 after the merger of banks.

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As per Yogi, the tax rate cuts will not impact the revenue collection but it will boost the GDP of the country, which will give a greater stimulus to the economy.

"The financial sector in Uttar Pradesh will get a major boost because of this decision of the Central government. There will be no negative impact on the revenue collection in the state," Yogi Adityanath said.

According to Yogi, Uttar Pradesh will have an opportunity to leverage growth in the state because of the deduction in Tax rates and a prevailing business atmosphere. The Chief Minister has stated that UP can majorly benefit from the tax rate deductions and the US-China trade war. He said that UP has good land bank and connectivity. 

"We have made 21 sectoral policies in Uttar Pradesh to boost the economy and make the state a preferred investment destination," said Chief Minister Yogi.

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(With inputs from ANI)