The Union Minister for Finance & Corporate Affairs Smt Nirmala Sitaraman made path breaking announcements today by revising the corporate tax rate downward and altering the percentage and application of Minimum Alternate Tax in certain cases. She has also taken measures to stabilize and enhance the flow of funds into the capital market and broadened the scope of CSR funding. EAC-PM has welcomed these comprehensive measures. These are important steps which will boost investment and enhance India’s economic growth. The Finance Minister has given an option to corporations to choose between reduced tax rates and prevailing exemptions. The Council feels that an even lower tax rate of 15% for companies making fresh investments in the coming months is bound to trigger new investments which will further augment India’s GDP. This augmentation will counterbalance the revenue that will be foregone.
Today’s announcements, that are part of the series of measures taken by the Government to revive economic sentiment will go a long way in helping India realise its full economic potential.