Chief Minister of Uttar Pradesh, Yogi Adityanath, on Sunday, while calling the cut in corporate taxes ‘bold and historic’, said that the measures have come in as a pre-Diwali gift to the economy from Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.

'To benefit the economy'

The Chief Minister told the media that the decision to cut corporate tax is very focused as it will help create more wealth with the companies and help in more investments. It will also create more jobs in the economy, thus helping with high development. Meanwhile, he said that it will also increase in demand and productivity and increased income. He further added that the tax rate cut is expected to benefit the automobile sector and capital intensive industries such as construction and engineering.

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The CM, while showing confidence in the decision said that the move will not only enable India to become a $5 trillion economy by 2024 as envisaged by PM Modi but also help in providing an opportunity to Uttar Pradesh to embark on the path of becoming a $1 trillion economy.

He said that the Uttar Pradesh government has already prepared 21 sectorial policies, and is ready as the new investment destination, while also adding that the new tax rate cut will boost the state to search new possibilities and will have a positive impact on the State's economy. He said that the move will not have any negative impact on tax collection in the State.

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While also talking about MSME sector, Uttar Pradesh CM Adityanath said that the US-China trade war will benefit the country and UP can derive the maximum benefit from it, as the state has better connectivity, land bank, policies of most of the focus sectors. He also said that India, as a nation, has made a significant jump in the country in the ease of doing business. He also added that the condition of the MSME sector in the State has improved in the past two-and-a-half years. 

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CM Adityanath went on to say that while the growth rate of many countries in the world is hovering in the range of 1-2 per cent, India is growing "over 5 per cent". He also congratulated the Prime Minister and Finance Minister for the decision and said that Uttar Pradesh is now going to become one of the most attractive investment destinations for the investors.

Aim to soothe the troubled economy

The move of tax cut came about after the government saw the Indian economy battling a six-year low economic growth and a 45-year high unemployment rate. The government, introducing reforms for the troubled economy, on Friday, slashed corporate tax rates for companies by almost 10 per cent to 25.17 per cent to bring them at par with Asian rivals such as China and South Korea, as it looked to boost demand and investments.

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