Maharashtra Chief Minister Devendra Fadnavis on Monday said the Union government's decision to cut corporate tax rates will immensely benefit Mumbai as it contributes 35 per cent of the total corporate tax collections in the country.
"The decision will immensely benefit Mumbai and Maharashtra as 35 per cent of the corporate tax in the country goes to the exchequer from Mumbai," he said at a press conference here.
The Chief Minister said the decision to cut the tax rates will make India the most preferred investment destination in the region.
"The industries which are relocating from China to South-east Asia will now see India as a preferred destination because of the cuts in corporate tax rates. Another decision, according to which the companies which will go into production after November 1, 2019 will have to pay a lifetime corporate tax of 15 per cent, will make India an investment destination of the world," he said.
"The decision to consolidate 10 banks into four banks will augment the risk-taking capacities of the banks. The lending capacity of the banks will be boosted by re-monetization of the banks with Rs 70,000 crore," he added.
Bringing in tax cuts and fiscal reliefs through an Ordinance, the government on September 20 slashed domestic corporate tax to an effective 25.17 per cent, inclusive of all surcharges and cess, in a bid to promote growth and investments amid economic slowdown that would cost the exchequer Rs 1.45 lakh crore. The effective corporate tax rate earlier was 30 per cent.