Big Bang Reforms! Uday Kotak all-praise for Nirmala Sitharaman corporate tax cut move

After Finance Minister Nirmala Sitharaman announced a massive Rs 1.45 lakh crore corporate tax cut sop, Uday Kotak, Executive Vice-Chairman and Managing Director of Kotak Mahindra Bank, said that this was a "Big bang reform" measure that will allow companies to compete with countries like the US who are taxed at lower rates there. The government slashed corporate tax rates to 22 percent for the domestic companies and 15 percent for new domestic manufacturing companies besides announcing other reliefs that powered Sensex higher by as much as 2200 points during intra day trade.Effective tax rate would be 25 percent with other charges.

This development came after data recent data showed that gross domestic product (GDP) fell to multiple-year low of 5 percent and the business sentiments turned pessimistic. Kotak said that these steps to cut down the corporate tax rate signals that our government is committed to economic growth and supports legitimate tax abiding companies.  

Reducing corporate tax rate to 25% is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the U.S. It signals that our government is committed to economic growth and supports legitimate tax abiding companies.A bold, progressive step forward.

— Uday Kotak (@udaykotak) September 20, 2019

"Reducing the corporate tax rate to 25% is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the U.S.  It signals that our government is committed to economic growth and supports legitimate tax abiding companies. A bold, progressive step forward," tweeted Kotak today.