New Delhi: Congress veteran Kapil Sibal on Saturday claimed that the government's move to cut the corporate tax rate was beneficial for the corporate world, claiming that the poor people of the country have been abandoned. Sibal wrote in a tweet that Howdy Modi, Corporate Diwali. India lost revenue of Rs 1.45 lakh crore.

Sibal further wrote that Diwali is needed for the needy. The additional money in the hands of corporates will not increase demand. Rural India will have to pay extra money to increase consumption. Sibal claimed that the government's move would benefit rich people. The poor have been left in their condition. It is noteworthy that the government made several big announcements on Friday to speed up the sluggish economy. These announcements include reducing the income tax rate for companies by about 10 per cent to 25.17 per cent, and reducing the effective rate of corporate tax to 17.01 per cent for new manufacturing companies.

Union Finance Minister Nirmala Sitharaman made these announcements at a time when the economic growth rate in the first quarter of the current financial year has come down to a six-year low of 5 percent. These announcements are expected to encourage investment and give a boost to employment generation.