Rahul takes dig at Modi after corporate tax cut, says Houston event most expensive

Congress leader Rahul Gandhi on Friday took a dig at Prime Minister Narendra Modi over the government slashing corporate tax ahead of his visit to the US and said that the "Howdy Modi" event at Houston is "the world's most expensive event ever at over Rs 1.4 lakh crore".

In a tweet, Gandhi also said it was amazing "what the PM is ready to do for a bump in the stock market".

Gandhi said that no event can hide the "reality of economic mess "HowdyModi" has driven India into".

"Amazing what PM is ready to do for a stock market bump during his HowdyIndianEconomy jamboree. At + 1.4 lakh crore Rs. the Houston event is the world's most expensive event, ever! But, no event can hide the reality of the economic mess "HowdyModi" has driven India into," he said.

Gandhi's comments came hours after Finance Minister Nirmala Sitharaman announced tax cuts and fiscal reliefs saying that domestic corporate tax has been slashed to an effective 25.17 per cent, inclusive of all surcharges and cess.

The move would cost the exchequer Rs 1.45 lakh crore.

The changes in the Income Tax Act have been brought through an ordinance.

Sitharaman said manufacturing companies set up after October 1 will have the option to pay 15 per cent tax and effective tax rate for new manufacturing firms will be 17.01 per cent inclusive of surcharge and tax.