New Delhi: In a bid to arrest the economic slowdown, Union Finance Minister Nirmala Sitharaman on Friday announced a series of tax incentives to boost the industry and restart investment. While the industrial fraternity welcomed the announcement, Opposition leaders on the other hand, criticised the government over the same.
“Looks like Diwali has come early”, tweeted Mahindra & Mahindra Managing Director Pawan Goenka.
Echoing similar sentiments, Biocon chairman Kiran Mazumdar Shaw, who was slammed by the Finance Minister yesterday, also lauded the announcement. Taking to micro-blogging sitem Shaw tweeted,”Corporate Tax Rate Cut From 30% To 25.2% To Spur Growth- this is a great move which will firmly revive growth and investment. My hats off to FM Nirmala Sitharaman for this bold but most needed move”.
Welcoming the announcement, NITI Aayog CEO Amitabh Kant on Twitter wrote,”Brilliant move! Way to go! Will provide a major impetus to animal spirits. Congrats Nirmala Sitharaman”.
RBI Governor, Shaktikanta Das lauded government’s tax cut move calling the announcements ‘bold & welcome’. “This is a bold and welcome decision… it will augur very well for our economy”, Das said at a media event.
FICCI president Sandip Somany also showered praise on Sitharaman and said that the tax reliefs announced by FM will certainly prove to be a much-needed booster dose in tackling the current slowdown and regaining the growth momentum. “Lowering of income tax on corporates is a longstanding FICCI request”, Somany asserted.
“Congratulations to PM Narendra Modi and FM Nirmala Sitharaman for the path-breaking announcement done to cut corporate taxes for domestic & new manufacturing companies which will boost ‘Make in India’, promote Investment & will create huge employment opportunities”, tweeted Union Minister Piyush Goyal.
However, Congress criticised the government’s move saying,”This does nothing to dispel fear that pervades in India Inc.” “A headline-itis afflicted, panic-stricken Modi Sarkar has cut corporate tax rates less than 3 months after a Budget and 4 months before the next one. This is welcome but it is doubtful whether investment will revive,”Congress leader Jairam Ramesh, a well-known economist said.
Senior Congress leader Abhishek Manu Singhvi said,”Good: GOI, FM reduce corporate tax rate drastically. But arbitrage between highest individual tax rate (42% effective) and highest effective corporate rate of 25% begins to look even more absurd. If animal instincts are required for growth, I predict 35% Individual rate yields more than 42%!”