New Delhi: Union Finance Minister Nirmala Sitharaman on Thursday said a number of good reforms have been taken by her government in the recent past to boost the economy of the country and one of them is corporate tax cut which will continue to boost it further.
She said this while introducing the Taxation Laws (Amendment) Bill, 2019 in Rajya Sabha today. “Cutting down the corporate tax is not just good for headlines, not just good PR, not just good atmospherics, it’s a good reform. This government now in its second term, after taking up a lot of reformatory steps in its first term, is committed to further reforms in the days to come,” she said in Rajya Sabha.
After getting it passed in Lok Sabha on December 2, the Finance Minister introduced the Taxation Laws (Amendment) Bill, 2019 in Rajya Sabha on Thursday. The Bill provides a new provision in the Income Tax Act that a company may opt to pay tax at 22 per cent if does not claim any incentive or deduction. However, the Bill got passed in Rajya Sabha today as well.
As per the Bill, a domestic manufacturing company which is set up on or after October 1, 2019, manufactures by March 31, 2023, may opt to pay tax at 15 per cent plus surcharge at 10 per cent and cess at 4 per cent if it does not claim any deduction.
Talking further about the Central government’s decision to reduce the corporate tax rate, Sitharaman had on Monday said that it was aimed at attracting investment and creating jobs.
“The government’s decision was also necessary to attract investment from multi-national companies, which are willing to shift operations from China in view of ongoing US-China trade war,” she said.
As per the earlier announcement, the Central government had in October reduced the corporate tax rate from 30 per cent to 22 per cent, and for new manufacturing companies to 15 per cent.