Guwahati, Sept 20: The Confederation of Indian Industry (CII) president Mr Vikram Kirloskar said, Finance Minister’s mega Corporate Tax stimulus is a major move to boost investors sentiments, encourage manufacturing and awaken animal spirits in the economy. Cut in corporate tax from 30% to 22% without exemptions has been a long standing demand of industry and is an unprecedented and bold move by the Government.
The CII is thankful to the Finance Minister for being so receptive and open to suggestions from industry. This consultative approach has further bolstered positive spirits in industry that the government is on a fearless track to ensure that India becomes as competitive on tax rates with the rest of the world.
This also indicates that the government is adopting a tax stimulus route rather than using increasing government spending route to help the recovery process of the economy. Coming just ahead of the festive season, there could not have been a better news as the entire country gets ready to celebrate.”
Mr. Chandrajit Banerjee, Director General, CII is truly heartened by the Finance Minister’s announcements from Goa. The reduction in the corporate tax rate has been a long-standing demand from industry, as the high rate of taxation was making Indian industry uncompetitive vis-à-vis its peers.
The decisions to bring the corporate tax rate down to 22% without exemptions, reduce MAT to 15% and tax new manufacturing companies at 15% will have a very positive impact on the cost of doing business in India.
The CII would like to congratulate the Minister for taking this decision without fearing for the fiscal deficit, as a lower tax rate will itself lead to higher revenue buoyancy and higher collections. Together with earlier announcements, CII expects this to truly revive the ‘animal spirits’ of the industry and create the spark for igniting economic activity sooner rather than later.
