New Delhi: Union Finance Minister Nirmala Sitharaman announced a reduction in corporate tax, giving big relief to the industry. The finance minister announced a tax cut of around 10 percent. The Indian industry welcomed the decision of the Indian government and said that it would help in tackling the sluggishness in the country. It will also help global companies to start manufacturing centers in India.
After the announcement by the Government of India, this rate is now 25.17 percent for existing companies and 17.01 percent for new manufacturing companies. Mukesh Aghi, president of the US-India Strategic and Partnership Forum, said, "We applaud the government for hearing our old demand to reduce corporate tax rates." This step will make Indian companies globally competitive and will provide an option to make India a major manufacturing hub.
Aghi said, 'This is a welcome step taken to reverse the economic slowdown. He expressed confidence that business tension between the two countries would be resolved before the meeting of US President Donald Trump and PM Narendra Modi on September 24 in New York. According to the announcement by the Finance Minister, after October 1 this year, companies setting up manufacturing plants in India will now have to pay only 17.01 percent tax. This rate could establish India as the most attractive tax rate investment destination in the ASEAN region.
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