The Economic Advisory Council to Prime Minister (EAC-PM) on Friday said that the measures announced by Finance Minister Nirmala Sitharaman, including a reduction in corporate tax, were path-breaking which will boost investment, enhance growth and help the country realise its economic potential.
Welcoming the comprehensive measures, EAC-PM said in a statement that these were part of the series of measures taken by the government to revive economic sentiment.
It said that 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" and had taken measures "to stabilise 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 statement said.
The Council said it feels that an even lower tax rate of 15 per cent 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," the statement said.
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