
Corporate tax rate cut to awaken animal spirits of economy : India Inc
The government’s decision to slash corporate tax rate for companies will boost investors’ sentiments, encourage manufacturing and awaken animal spirits in the economy, as per India inc.
CII President Vikram Kirloskar said the cut in corporate tax from 30 per cent to 22 per cent without exemptions has been a long standing demand of industry and is an unprecedented and bold move by the government.
“The Finance Minister’s mega corporate tax stimulus is a major move to boost investors sentiments, encourage manufacturing and awaken animal spirits in the economy,” he said in a statement.
This move also indicates that the government is adopting a tax stimulus route rather than using higher government spending route to help the recovery process of the economy, Kirloskar added.
“Coming just ahead of the festive season, there could not have been a better news as the entire country gets ready to celebrate,” he said.
Finance Minister Nirmala Sitharaman in Panaji on Friday slashed the tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate to 17.01 per cent for new manufacturing firms to boost economic growth rate from a six-year low by incentivising investments to help create jobs.
Sharing similar views, Ficci said that these announcements will give a major boost to the “animal spirits” of corporate India and will reinvigorate the manufacturing sector that has been going through a difficult phase of late. With the kind of corporate tax rate cuts announced, India now becomes a competitive market in the region with our rates similar to those prevailing in the ASEAN countries, it added.
FICCI is sure that this trigger will lead to a virtuous cycle of investments, growth and higher employment, the industry body said.
“The additional measures announced to stabilise the flow of funds to the capital markets by not applying the enhanced rate of surcharge on capital gains arising from sale of equity shares and units of equity funds is another major positive,” it said.
Property brokerage Investor Clinic’s group firm Home and Soul’s CEO Sakshi Katiyal said the announcement will boost the sentiments of the corporate sector.
“Reduction of corporate tax will bring in overall positivity and growth at the grass root level. I believe that the industry will utilise this gift in the most judicious way, and help boost the economy in turn,” she said.

Landslide blocks Srinagar-Jammu national highway, restoration work underway

Education second biggest focus of Union Budget 2021, says PM Modi

Odisha: Opposition says OBC survey bid to create vote bank by Naveen Patnaik
- A former state minister said that the OBC survey was an attempt to create an OBC votebank and this would be the first instance in Odisha of influencing voting as per caste lines.

Goa ecologists, miners oppose Centre’s proposed amendments to mining act
- Goa Mineral Ore Exporters Association (GMOEA), a body of mine owners, said they have written to the Centre expressing reservations over the proposed amendments.

Manipur DM issues notice under new digital rules, withdraws it: See details here

With 14,989 fresh Covid-19 infections, India's active cases surge past 1.7 lakh

News updates from HT | Farmers’ protest: Multiple Delhi borders closed

Amid row over Azad, J&K Congress leaders meet Rahul Gandhi

'Tandav' row: SC to hear Amazon Prime head's anticipatory bail plea

EC meets revenue officials ahead of assembly polls

Notice served under new IT rules in Manipur, withdrawn
- The notice under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 notified on February 25, was issued on March 1 and served on Tuesday morning to the publisher/intermediary of Khanasi Neinasi, which means Let’s Talk in Manipuri.

NIA arrests BSF officer for helping cross-border drug smugglers

More private hospitals to become vaccine sites, Centre allows states to decide

High maximum temperatures to persist for another 4-5 days: IMD
