Govt to extol benefits of corporate tax cut

New Delhi: In a move aimed at making political gains, the government has decided to extol the benefits of corporate tax cut among the masses.

According to a government official, key ministers have been tasked to spell out the benefits of the corporate tax cut decision that has been taken by the Prime Minister Narendra Modi-led government to control the economic slowdown and boost employment creation in the country.

The official stated that the government believe that revision in tax rates would revive demand across industries and put the economy back on the growth track.

As per the official, the key ministers have been assigned the cities where they would highlight the benefits of the corporate tax cut among the people by organising Press conferences. Such press meets would be held in the states of West Bengal, Bihar, Uttar Pradesh, Assam, Gujarat, Maharashtra, etc.

The coordination of such press meets has been assigned to Minister of State for Finance Anurag Thakur.

As per the official, the government's rationale behind slashing corporate tax is to create employment by improving the financial health of domestic companies in manufacturing and service sectors.

The government had on September 20 reduced the corporate tax for a domestic company to 22 per cent if they do not seek any exemption or incentives, while the effective tax rate would be 25.17 per cent inclusive of all surcharges and cess for such domestic companies. Earlier the corporate tax was 34.94 per cent.

However, for new manufacturing firms set up after October 1, 2019, and commencing operations by March 31, 2023, the effective tax rate will fall from 29.1 per cent to 17 per cent.

Notably, the BJP has launched a public awareness campaign on the removal of Articles 370 and 35A from the state of Jammu and Kashmir.