Aimed at reviving private investment, Union Finance Minister Nirmala Sitharaman on Friday announced to slash corporate tax to 22 per cent for domestic companies, lower tax of 15 per cent for new manufacturing firms. The fresh measures are expected to help business and industry in beating the slowdown which has gripped the country for quite some time. With global headwinds continuing and the world economy slowing, the stimulus measures has attracted all-round appreciation.

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Varun Kapur, Executive Director, Travel Food Services, said "The recent announcement of relaxing corporate tax rate is a bold move by the government which will accelerate industrial activity and bolster investment across all sectors. It is bound to  increase capital formation in the country, leading to business expansion and job creation."

According to him, this will offer a two fold benefit to the end consumer, and "allow companies such as ourselves to accelerate expansion plans coupled with job creation."

Varun Kapur said the trickle-down effect from the increased consumer confidence and spending power of the Indian consumer, will provide an impetus to growth, adding "The vigour that will be introduced with these measures will kick start the economy and put it back on the rapid trajectory that we as a country have got accustomed to."

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Notably, the corporate tax rate has now been brought at par with many emerging economies and countries in South East Asia. The move is likely to make the Indian economy globally competitive.