Govt Slashes Corporate Tax Rates

Finance Minister Nirmala Sitharaman announced major tax cuts for demestic corporates as part of new measures by the governement to boost growth and investment. Tax rates have been reduced for domestic firms from 30% to 22%. New manufacturing companies will be taxed at 15% instead of the earlier 25%.

Crux of the Matter

1. India’s new corporate tax rates are now comparable to other East Asian countries.

2. The tax stimulus will cost the government Rs 1.45 trillion per annum.

3. Sensex responded positively to the news with a jump of 2000 points.

4. The move has been hailed by corporate leaders. Uday Kotak hailed the “big bang reforms” saying they would help Indian companies compete with global companies in lower tax countries like US.

Curiopedia

A corporate tax, also called corporation tax or company tax, is a direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at state or local levels. More Info

Curated Coverage

1. Livemint – Corporate tax rates slashed as govt announces ₹1.45 lakh crore stimulus

2. Hindustan Times – Corporate tax slashed to fire up economy, sends Sensex soaring past 2,000 points

3. Livemint – India Inc welcomes cut in corporate tax

4. Economic Times – Friday blockbuster: Nirmala Sitharaman’s Rs 1.45 lakh crore stimulus to reboot India

#Economy #India