Corporate tax cut: PM Narendra Modi praised the announcement by Nirmala Sitharaman
Prime Minister Narendra Modi said today that his government's corporate tax move was historic and a "win-win" for 130 crore Indians. It would give great stimulus to his flagship Make in India scheme besides attracting investments, PM Modi said in tweets.
"The step to cut corporate tax is historic. It is 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," PM Modi tweeted after Finance Minister Nirmala Sitharaman announced the measures.
The PM added that 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."
The Finance Minister announced that corporate tax rate on domestic firms would be reduced from 35 per cent to 25.2 per cent to boost the economy after a six-year low in GDP growth and amid a 45-year high unemployment rate.
The new tax structure, effective from April, and will bring Indian corporate tax rate at par with Asian nations.
The S&P BSE Sensex jumped to a 10-year high after the announcement and the rupee climbed by 0.6 per cent against the dollar.
Domestic companies have praised the move as the biggest in the measures announced by the government in tranches. The Prime Minister, in his tweets, also shared the key points of the government's move.