In a bid to promote growth and investment, Finance Minister (FM) Nirmala Sitharaman on September 20, slashed the effective corporate tax from 30 per cent to 25.17 per cent, inclusive of all cess and surcharges for domestic companies. However, the move is effective from April 1, is subject to the condition that they will not avail any other incentive or exemptions.
Ever since this announcement is made, reactions are pouring in on social media and Twitter.
Let’s quickly go through what people are saying about the corporate tax cut.
“The tax relief announced by FM Nirmala Sitharaman will certainly prove to a much-needed booster dose in tackling the current slowdown and regaining the growth momentum. Lowering of income tax on corporates is a longstanding FICCI request,” said Sandip Somany, President, FICCI India.
"This is a bold and welcome decision. It will augur very well for our economy," Shaktikanta Das, governor, Reserve Bank of India (RBI) said at the event. Das was speaking at the India Today Conclave when Finance Minister Nirmala Sitharaman made the announcement in Goa ahead of the GST Council meet.
Pawan Goenka, MD, Mahindra & Mahindra took to Twitter to share his views: ‘Looks like Diwali has come early.’
Amitabh Kant, CEO, NITI Aayog, celebrated today's announcements and tweeted, ‘Brilliant move! Way to go! Will provide a major impetus to animal spirits. Congrats.’
Indian economist and Congress (INC) member Jairam Ramesh, however, was not that happier with the move. He tweeted: A headline-is afflicted, panic-stricken Modi Sarkar has cut corporate tax rates less than 3 months after a Budget and 4 months before the next one. This is welcome but it is doubtful whether the investment will revive. This does nothing to dispel the fear that pervades in India Inc.
Kiran Mazumdar Shaw, CEO & MD, Biocon said that the corporate tax rate cut from 30 per cent to 25.2 per cent to spur growth is a great move which will firmly revive growth and investment. My hats off to FM Nirmala Sitharaman for this bold but must needed move.
Whereas Prakarsh Gagdani, CEO, 5 Paisa Capital, said, “When growth is at 5 per cent one expects drastic and radical measures. Today the government has done just that. Reduction in corporate tax rate is a big bang reform. This along with liquidity in the banking system should trigger investments and thereby growth.”