As the Union Finance Minister Nirmala Sitharaman slashed effective corporate tax to 25.17 per cent on September 20th, 2019, Assam Finance Minister Himanta Biswa Sarma hailed this decision and said that it will boost employment and economic activity in India.
Sarma took to his Twitter handle and appreciated the move by the Centre. “On a historic day of big announcements for industry, glad to have attended 37th #GSTCouncil Meeting under Chairmanship FM @nsitharaman ji. The decision on #CorporateTax cut & other decisions shall push Make in India, boost employment & economic activity,” Sarma tweeted.
The decision to slash the corporate tax was taken in Goa on September 20th, 2019 to boost the economy of the country and it is inclusive of all cess and surcharges for domestic companies. Announcing this Sitharaman said that the new tax rate will be applicable from the current fiscal which began on April 1st, 2019.
The revenue foregone for this move will be Rs 1.45 lakh crore annually and the new rates would be comparable with the lowest tax rates in the South Asian region and in South East Asia. The announcement saw shares rising more than five per cent in Mumbai, which is considered as the biggest jump in 10 years.
Assam Chief Minister Sarbananda Sonowal too commended this move by the Centre to boost Make in India initiatives. He tweeted, “I commend and congratulate Hon’ble Shri @narendramodi Ji and FM Smt @nsitharaman Ji for the bold decisions in the #GSTCouncil meet. The rationalisation of #CorporateTax will promote growth and investment in the nation & boost #MakeInIndia initiatives.”
The government has also decided to not levy enhanced surcharge introduced in Budget on capital gain arising from the sale of equity shares in a company liable for securities transaction tax.
Photo credit: @himantabiswa