Will Modi’s Corporate Tax Reduction Put India On Global Growth Map?
Will Modi’s Corporate Tax Reduction Move Put India On Global Growth Map?

Will Modi’s Corporate Tax Reduction Move Put India On Global Growth Map?

SUMMARY

The government has slashed corporate tax rates to 22% for existing domestic companies

The total revenue foregone is estimated at INR 145K Cr ($20 Bn)

This step has been termed as another ‘bold’ and ‘path changing’ attempt for the Indian startup economy

“Indian wealth creators, entrepreneurs should be extended all kinds of support and tax is one of the foundations … we should have more facilitating rates rather than suffocating rates of taxation,” said finance minister Nirmala Sitharaman in August, supporting the corporate tax reduction proposed during the Union Budget 2019. “India now has one of the lowest tax slabs amongst its global peers. Excess money freed up after global central bank’s interest rate cut would pour into our economy. Our Hon’ble Prime Minister Shri Narendra Modi visiting the US with these policy changes at home would project India strongly on the global map. India will be on the path of growth and a lot of progress would be seen from here onwards,” said Abhishek Bansal, Chairman, Abans Group.“A lethal combination of the power surplus in the country, GST reforms and this corporate tax relief of 15% will make India a hotspot for FDIs due to the ease of doing business, creating a pathway for the 5 trillion dollar economy envisioned by the government,” he added.

True to her words, with the Taxation Laws (Amendment) Ordinance 2019 passed on September 20, the government has slashed corporate tax rates to 22% for existing domestic companies and 15% for new domestic manufacturing companies.!function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script")[0],d=/^http:/.test(e.location)?"http:":"https:";if(/^\/{2}/.test(i)&&(i=d+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var r=e.createElement("script");r.async=1,r.id=s,r.src=i,o.parentNode.insertBefore(r,o)}}(document,0,"infogram-async","https://e.infogram.com/js/dist/embed-loader-min.js");

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