India Inc. Hails Corporate Tax Reduction - Jatin Verma

India Inc. Hails Corporate Tax Reduction

Updated on 21 September, 2019

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India Inc. Hails Corporate Tax Reduction move may spur the economy; Auto Sector buying sentiment likely to improve

  • Indian Inc. bigshots (chairman, founder, ceo) welcomed the Centre’s decision to reduce the corporate tax rate and the MAT.
  • This is a big respite to give the required stimulus to the economy.
  • It will also enable companies to optimize their cash flows leading to increased investments. A great step towards the $5-trillion economy.
  • The massive amount of savings in corporate tax, aggregating to ₹1.45 lakh crore, is a timely stimulus for the revival of the economy.
  • It will help enterprises create long-term value and favorably impact the economy.
  • It will lead to a big reset and revive animal spirits in Corporate India.
  • It will lead to economic buoyancy and make Industry globally more competitive.
  • An immediate benefit of an investment incentive for the manufacturing sector.
  • It will also lead to a paradigm shift in mindset.
  • It reaffirms the govt.’s willingness to move beyond incrementalism and act with conviction to pursue economic reforms.
  • It addresses the core challenges of liquidity, reinstating India as an attractive investment destination.
  • The decision has come as a much-needed gust of fresh air to resurrect and pump prime the economy.
  • The bold and positive move to rationalize the corporate tax reduction structure will help kick-start the next big economic upcycle.
  • It will go a long way in improving ‘Ease of Doing Business In India’ even further.
  • It will further boost investor confidence and start the investment cycle.
  • It will help improve buying sentiment and spur the auto sector in the long term.
  • It was needed for economic revival and for the manufacturing sector.
  • It will create deeper impact, instill more confidence in the economy and amongst Corporates.
  • It will help Indian companies compete better on the global stage.
  • India Inc must now do its bit to invest more of its retained earnings in R&D and innovation, which are the surest guarantors of international competitiveness
  • It will make India more competitive as businesses grow through low taxes.
  • The govt. should provide the same type of benefits to the housing and real estate sector.
  • It will boost the manufacturing and real estate sector as well.
  • The saving in corporate tax will provide growth capital for the industry which will be a booster for the economy.
  • Surplus funds available to companies will be invested in Capex and talent.
  • This will lead to an improve in profit margin and capital investment across sectors.
  • The move shows that the govt. is keen to bring down taxation to international levels.
  • This reform will make India an attractive destination for FIIs and long term investors.
  • They would look forward to seeing similar measures on personal taxation.
  • Some felt that the Centre had ignored providers of risk capital. Profits of venture capital and private equity funds are taxed at a full surcharge. Currently, the tax difference between long-term capital gains on listed markets and private markets are as high as 18?solute points.
  • The move would spur investment in corporate, manufacturing and capital markets and some expected a similar announcement for the commercial vehicles sector
  • It would lead to better pay, promotions and it would directly stimulate demand.
  • These measures should win back sentiment and propel the economy back to 7% growth next year.
  • In healthcare, this will give a boost to the manufacture of domestic consumables and devices.
  • This substantial direct tax reduction will allow more liquidity for the corporates that are currently assuming drastic measures to protect their profitability.

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