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Letter to BS: Economic slowdown prompts govt to cut corporate tax

The rate cut is aimed at luring foreign companies that are winding up their facilities in China as a result of US-China trade war

Make in India tableau at Republic day parade
Make in India tableau at Republic day parade

This refers to "Impetus to Make in India, claims PM; Oppn says it's timed for US visit" (September 21). The government's decision to slash the corporate tax rate has come in for wide praise from various quarters. However, the Opposition has not been generous to the government and believes that the decision has been timed for the US visit of the Prime Minister. A few things need to be appreciated in this regard. Slashing of corporate tax has not come all too sudden. There has been gradual reduction over the years and this big slash would not have come now had there been no slowdown.

So, the current economic slowdown has prompted the government to go in for this huge cut in corporate tax rate now. Also, the rate cut is aimed at luring foreign companies that are winding up their facilities in China as a result of US-China trade war, to set up manufacturing facilities in India. Clearly, the decision to cut the corporate tax rate could not have been postponed till the next Budget as delaying it any further would not have been useful in arresting the slowdown or attracting foreign firms to set up their facilities in India. The Opposition is well within its rights to criticise the government but the criticism needs to be based on sound rationale and it should not lack conviction.

Sanjeev Kumar Singh, Jabalpur

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