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Corporate leaders hail cut in tax rate; say will boost economy, manufacturing

Press Trust of India  |  New Delhi 

Corporate leaders on Friday welcomed the government's move to slash corporate tax rate. Following are the comments of top industry leaders:

* Harsh Pati Singhania, director of J.K. Organisation: I compliment Finance Minister (Nirmala Sitharaman) on her bold move to reduce corporate tax rates and also clarifying that the enhanced surcharge announced in the Budget shall not apply on capital gains. This should certainly benefit industry and would serve to boost business sentiment.

* Britannia Industries Ltd, managing director of Varun Berry: Decisive leadership shown by the government. It's a concrete step to ease the current economic situation considering the present operating environment in the country. A Good Day indeed!

* Panasonic India and South Asia President and CEO Manish Sharma: The announcement to cut corporate tax rates for existing domestic companies to 22 per cent and new manufacturing companies to 15 per cent, is a progressive step that will spur growth.

The decision will not only further India's ease of doing business but also provide impetus to the manufacturing sector in the country. We believe that the move will enable Indian organisations to compete at par with the developed nations on a global scale.

* Dalmia Bharat Group Managing Director Puneet Dalmia: The reduction in corporate tax sends a powerful signal that the government is absolutely determined to revive the economy. It also demonstrates the government's sensitivity and its faith in the corporate sector to contribute to the economic revival. This will improve the ability of India Inc to make fresh investments, speed up projects, and make a positive impact on job creation.

* CEAMA President and Godrej Appliances Business Head & EVP Kamal Nandi: We welcome the announcement by the government to reduce the corporate tax on domestic firms. This is a positive move for the Indian economy and will provide level-playing fields to local manufacturers. It is expected to boost the economy and especially the manufacturing sector is likely to get the impetus.

* US-India Strategic Partnership Forum CEO and President Mukesh Aghi: Additional announcements pertaining to lowering of minimum alternate tax rate to 15 per cent, non-applicability of buyback tax on select listed companies and limiting the applicability of higher surcharge by making it non-applicable on capital gains on sale of security including derivatives held by foreign portfolio investors will help in re-assuring investors from global economies, including the US.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, September 20 2019. 20:50 IST