Union Home Minister Amit Shah on Friday said the Modi government is committed to making India a big manufacturing hub as Finance Minister Nirmala Sitharaman announced big-ticket reforms in the economy by slashing corporate tax.
"Rationalisation of corporate tax had been a long-pending demand, which is now a reality. This move will make our corporates globally competitive and our markets much more exciting for potential investors," tweeted Shah.
"Modi government is committed to making India a big manufacturing hub and this decision along with previous announcements on relaxing FDI will go a long way in realising this objective. I congratulate PM @narendramodi and FM @nsitharaman for announcing these bold measures," he tweeted.
Bringing in tax cuts and fiscal reliefs through an Ordinance, the government on Friday 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 an economic slowdown that would cost the exchequer Rs 1.45 lakh crore.
"A new provision has been inserted in the Income Tax Act from financial year 2019-20 (beginning April 1) which allows any domestic company an option to pay income tax at the rate of 22 per cent subject to the condition that they will not avail any exemption or incentive," Sitharaman told the media ahead of a GST Council meeting
Today's announcements top a series of measures the finance minister has announced in the last one month to perk up the economy.