Finance Minister Nirmala Sitharaman today proposed to slash corporate tax for domestic companies and new domestic manufacturing companies, corporate tax rate to be 22 percent without exemptions. Also minimum alternate tax (MAT) is reduced to 15 percent from 18.5 percent for companies continue to avail exemptions & incentives.
Speaking about the same Kiran Mazumdar Shaw of Biocon said, “I think it is an excellent news because this is really a much wanted and much needed reform. This will actually do multiple things. It will, of course, get the investment cycle buoyed up, it will also create greater growth of a capital market and of course from a company’s point of view, it allows them to be more compliant in terms of their debt ratios because they will be able to add more profitability to their bottomline.”
She added, “So I think, all in all, it is a welcome news. I must congratulate FM after having enquired about what she was going to do but this is the best move ever, which I think is most welcome. I am very confident this will kick-start the economy and I welcome this move.”
While giving global picture she said, “We are actually in the midst of a global slowdown and if you look at what India needs to do to be competitive obviously our tax structures are not competitive with our economies and given that now we are going to be on a level playing field with many of these competing economies that have slowed down it gives us a boost. Therefore I believe this is absolutely a timely move, right move and it will bring back the investments sort of confidence.”