Uttar Pradesh Chief Minister Yogi Adityanath Sunday termed as "historic" and "bold" the cut in corporate tax rates and said the measures are a precious pre-Diwali gift to the sector from Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.
Adityanath exuded confidence that the Union Finance Ministry's move will "not only enable India to become a USD 5 trillion economy by 2024 as envisaged by PM Modi but also help in providing an opportunity to Uttar Pradesh to embark on the path of becoming a USD 1 trillion economy".
"The message behind the cut in the tax rates is very clear -- more wealth with the companies, more investment by the companies, more creation of jobs in the economy, high development, increase in demand and productivity and increased income," he told reporters at the Indian Institute of Management, Lucknow.
He said the tax rate cuts will tremendously benefit the automobile sector and capital intensive industries such as construction and engineering.
"UP has already prepared 21 sectorial policies, and is ready as the new investment destination. The new tax rate cut will boost the state to search new possibilities and will have a positive impact on the state's economy. The move will not have any negative impact on tax collection in the state. The tax rate cut is a historic and bold step," Adityanath said.
"The US-China trade war will benefit the country, and UP can derive the maximum benefit from it, as the state has better connectivity, land bank, policies of most of the focus sectors. We have made a significant jump in the country in the ease of doing business. In the past two-and-a-half years, the condition of MSME sector in the state has improved," the chief minister said.
Adityanath said at a time when growth rate of many countries in the world is hovering in the range of 1-2 per cent, India is growing "over 5 per cent".
"I congratulate the Prime Minister and Union Finance Minister for these historic and bold decisions," he said, adding Uttar Pradesh will become one of the most attractive investment destinations for investors.
Battling a six-year low economic growth and a 45-year high unemployment rate, the government on Friday slashed corporate tax rates for companies by almost 10 per cent to 25.17 per cent to bring them at par with Asian rivals such as China and South Korea, as it looked to boost demand and investments.
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