India Inc rejoiced in festive celebrations on Friday, a month ahead of the upcoming Diwali season, with the government delivering a dramatic corporate tax break in the hope of unleashing the animal spirits of the economy.
Finance Minister Nirmala Sitharaman’s announcement of a lowering of corporate tax,effectively by 10 percentage points for existing companies and 12 points for new ones, represents the most sweeping reforms in years.
It brings corporate tax rates to levels that are fiercely competitive at a global level, and gives Prime Minister Narendra Modi enormous leverage as he gets set to travel to the US to invite investments.
The announcement came in the immediate wake of three rounds of policy tweaks in recent weeks, which had failed to inspire hopes of a reversal of the economic slowdown. But the mood turned upbeat on Friday, and key stock indices surged ahead (see accompanying story).
The tax cuts will likely result in a revenue loss of ₹1.45lakh crore a year, but the government expects a revival in consumer demand to make good some of that shortfall.
Eligible companies can adjust the benefit in the next instalment of advance tax, due on December 15.
Bu hikaye The Hindu Business Line dergisinin September 21, 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The Hindu Business Line dergisinin September 21, 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Covid Presents An Opportunity For India
India must attract investors exiting China post-Covid. Streamlining of project clearances and relaxation in FRBM norms will help
Did Alternative Assets Shield You From Covid-19 Volatility?
The assets closely linked to stock and debt markets could not stave off the losses
How To Put Aircraft To Bed
Preserving grounded planes, to get them up and flying at short notice, is a challenging task. Ashwini Phadnis captures the process
There Can Be No Going Back On WFH
Covid-19 has fast-forwarded the shift to ‘work from home’. However, some face-to-face connect will always be needed
UN, WHO Urged To Ensure ‘Benefit Sharing' Of Covid-Related Data
Biopharma firms should reach vaccines, medicines to poor nations at an affordable price, say civil society bodies
With No Clear Signal From Rlys, States Explore Ways To Bring Back Migrants
Quarantine centres, cross-country buses being arranged even as migrants hop on to boats, trucks and ambulances
Centre Allows All Neighbourhood Shops To Open But With Riders
Final call will be taken by local authorities; shopping complexes that draw fewer ‘outsiders’ are permitted to operate
Covid Impact Relatively Muted In India
Compared to Italy and the US, India’s rate of infection spread has been slow. This can be attributed to the strict measures in place
How Global Trade Will Fare Post-Covid
China isn’t likely to lose its pre-eminent position soon. India, for one, will need to make manufacturing globally competitive
How To Curb Harassment In The Virtual Office
Training and sensitisation are essential. Institute a strict dress code and chat etiquette to ensure professionalism during video calls
