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Corporate tax cut: PM Modi says it's 'historic', will create more jobs

Corporate tax cut: Hailing the move as a "historic" step, PM Modi took to twitter to praise the tax cut and said that the announcements made in last few weeks manifest the government's resolve to create more jobs, make India a better place to do business as well as give the much needed impetus to its Make in India programme.

twitter-logo BusinessToday.In        Last Updated: September 20, 2019  | 16:00 IST
Corporate tax cut: PM Modi says it's 'historic', will create more jobs
Corporate tax cut: Prime Minister Narendra Modi on Friday hailed finance minister Nirmala Sitharaman's announcement to slash corporate tax rate for domestic firms and new domestic manufacturing companies as

Corporate tax cut: Prime Minister Narendra Modi on Friday hailed finance minister Nirmala Sitharaman's announcement to slash corporate tax rate for domestic firms and new domestic manufacturing companies as "historic" step. Lauding the move PM Modi took to twitter to praise the tax cut and said that the announcements made in last few weeks manifest the government's resolve to create more jobs, make India a better place to do business as well as give the much needed impetus to its Make in India programme.

"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," tweeted PM Modi.

"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 said.

Battling a six-year low economic growth and a 45-year high unemployment rate, the government on Friday brought the corporate tax rate down to 22% from 30%. This means the effective tax rate is 25.17% inclusive of all surcharges and cess for the domestic companies.

Also Read: Corporate tax rate cut: Sensex rises over 2,200 points in highest single-day gain ever

However, for new manufacturing companies the existing tax rate is 25%, which has been brought down to 15%. The effective tax rate after surcharges and cess on such companies will be 17%.

"Tax concessions will bring investments in Make in India, boost employment and economic activity, leading to more revenue," Finance Minister Nirmala Sitharaman said at a press conference in Panjim, Goa on Friday.

The new tax rate will be applicable from the current fiscal which began on April 1. The government will bring in an ordinance to effect the changes in the income Tax Act and Finance Act.

Also Read: Corporate tax cut: Modi govt gives big relief to India Inc, slashes rate to 22% from 30%

Also Read:Congress' Jairam Ramesh points out corporate tax cut made to coincide with 'Howdy Modi' event

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