21 September, 2019
3 Min Read
GS-III: A Deep Cut.
Tax cuts have enthused Corporate India , but there is the fiscal problem to deal with. Finance Minster announcement of deep cut of corporate taxes and roll back of some market unfriendly proposals in the budget she presented in July.
Corporate Tax Cut:
Finance Minister Sitharaman’s announcement to cut corporate tax rates was a welcome surprise for the Indian economy that has been struggling with growth deceleration.
The government has cut the corporate tax rate for domestic companies to 22 per cent (inclusive of all cesses and surcharges) for domestic companies from the existing 30 per cent.
New tax rate will be applicable from the current fiscal which began on April 1.
The move is a lift for the Modi government who was facing increasing pressure to relight once-stellar economy after five consecutive quarters of slowing growth saw India this year loses its status as the fastest-expanding major economy to China.
Finance Minister announcement:
Source: THE HINDU
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