Guwahati: Confederation of Indian Industry (CII) president Vikram Kiloskar praised the Union finance minister Nirmala Sitharaman’s decision of cutting corporate tax from 30% to 22% on Friday.
In a statement, Kirloskar said: “Hon’ble finance minister’s mega corporate tax stimulus is a major move to boost investor’s sentiments, encourage manufacturing and awaken animal spirits in the economy. Cut in corporate tax from 30% to 22% without exemptions has been a long standing demand of industry and is an unprecedented and bold move by the government.”
Kirloskar also said that CII is thankful to the finance minister for being receptive and open to suggestions from industry. “It has bolstered positive spirits in industry that the government is on a fearless track to ensure that India becomes as competitive on tax rates with the rest of the world,” he added.
“This also indicates that the government is adopting a tax stimulus route rather than using increasing government spending route to help the recovery process of the economy. Coming just ahead of the festive season, there could not have been a better news as the entire country gets ready to celebrate,” said the CII president.
Meanwhile, CII director-general Chandrajit Banerjee also issued a statement where he said that the industry association is truly heartened by the finance minister’s announcements from Goa. “The decisions to bring the corporate tax rate down to 22% without exemptions, reduce MAT to 15% and tax new manufacturing companies at 15% will have a very positive impact on the cost of doing business in India,” he said.
Banerjee also congratulated Sitharaman “for taking this decision without fearing for the fiscal deficit, as a lower tax rate will itself lead to higher revenue buoyancy and higher collections”.