The Indian Express
New Delhi, Sep 20: Hailing the Finance Ministry’s announcement about slashing the corporate tax rate for domestic companies, Prime Minister Narendra Modi Friday stated that the decision will attract private investment from multinational companies and result in employment generation.
Terming the decision as ‘historic’, the Prime Minister also said that lowering of taxes will give a “great stimulus to Make In India initiative”.
“The step to cut corporate tax is historic. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians,” Modi tweeted.
PM Modi also lauded the government for the announcements made in the past week, saying that the decisions will add up to build a ‘$5 Trillion economy’.
“The announcements in the last few weeks clearly demonstrate that our government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society and increase prosperity to make India a $5 Trillion economy,” he stated.
Earlier in the day, Union Finance Minister Nirmala Sitharaman announced that the government has decided to slash the corporate tax rate for domestic companies to 22 per cent exclusive of all cess and surcharges for domestic companies from 30 per cent.
“Tax concessions will bring investments in Make in India, boost employment and economic activity, leading to more revenue,” said Sitharaman.
Announcing a new provision in the income tax act with effect from the fiscal year 2019-20, the Finance Minister said, “new domestic manufacturing companies incorporated after October 1 can pay income tax at 15 per cent rate without any incentives.”