New Delhi: Soon after Union Finance Minister Nirmala Sitharaman said that the Central government’s move to reduce corporate tax has had a positive impact on the economy, Trinamool Congress (TMC) MP Mahua Moitra on Monday slammed the minister and said the tax cut only helps the profitable become more profitable.
She further alleged that the tax cut does not do anything to revive a very large part of the economy which is struggling.
“The (corporate) tax cut that you have proposed only helps the profitable become more profitable. It does not do anything to revive a very large part of this economy which is struggling,” Mahua Moitra said in Lok Sabha.
Introducing the Taxation Laws (Amendment) Bill, 2019 for passage in Lok Sabha, Sitharaman earlier in the day said the additional fiscal measures have been taken by the Central government to stimulate growth and boost job growth as well.
Mahua Moitra alleged that if the intention of the bill is to help everybody, then it should be applied to all entities and not just to companies.
“If this bill was really to help everybody, especially MSME sector, then the tax rate reduction should apply to all entities. It should not apply to just the companies, it should apply to LLPs, partnership firms and other non-corporate entities also,” Moitra further alleged.
Earlier in the day in Lok Sabha, Sitharaman said that the historic move of the Central government has had a positive impact on the economy and companies wanted to get out of China due to trade war with the US.
She also informed the Lok Sabha that part from India, many other countries in South East Asia had also reduced their corporate tax to attract investment. Such countries include Thailand, Vietnam and Singapore.
Taxation Laws (Amendment) Bill, 2019 provides for inserting a new provision in the Income Tax Act and states that a company may opt to pay tax at 22 per cent if does not claim any incentive or deduction.