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.
Reacting to the news, Ajay Piramal, chairman, Piramal Enterprise said, “First of all, I want to congratulate the government and the FM for taking such a bold step. This is what we have been waiting for, I think it will kick-start the economy. I have no doubts in it,” he said, adding that as important as the benefits that we are seeing, the government is also foregoing Rs 1,45,000 crore in terms of tax.
Moreover, it is also the whole positive sentiment, it gives the impression now that the government is hearing what business has been saying, they are willing to embrace business as a partner in the progress of the country.