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Corporation tax cut a big positive, but demand recovery may take time

Employment support led by new investments made by domestic manufacturers is expected, as all corporate entities are eligible for lower taxes

Corporate tax cuts a big positive, but demand recovery may take time

The finance minister’s announcement on Friday brought cheer to stock market participants and gave a boost to the broader markets, which recorded their highest single-day gains in a decade. Undoubtedly, the measures are sentimentally and structurally positive. However, the question now is whether these steps will stimulate demand and investments. Perhaps yes, but not immediately. First, since the new corporation tax rates are now competitive globally, the move will help encourage foreign investments over the medium term, especially from companies looking at an alternative to ...